Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 154

Multiple Choice

Carborundum Corporation reported the following operating costs and environmental quality costs for the past four years. Assume that all environmental quality costs are variable and that all changes in the quality cost ratios are due to an environmental cost reduction program. $\begin{array}{rrr}&\text { Quality Costs as }\\\text { Year }& \text { OperatingCosts } & \text { Percent of OperatingCosts }\\2018 & \$ 3,000,000 & 25.0 \\2019 & 3,100,000 & 23.0 \\2020 & 3,200,000 & 21.0 \\2021 & 3,300,000 & 20.0\end{array}$ What is the change in environmental costs from 2019 to 2020?

• A)$41,000
• B)$37,000
• C)$12,000
• D)$672,000

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Definitions:

Adjustment of Debts

A legal process by which an individual or business in financial distress can reorganize or negotiate their debt obligations to manage or reduce them.

Nondischargeable Debts

Financial obligations that cannot be eliminated through bankruptcy proceedings, such as certain taxes, fines, and student loans.

Child Support Payments

Financial contributions made by a non-custodial parent to assist in the upbringing of their children.

Chapter 13 Bankruptcy

A type of bankruptcy that involves a repayment plan of three to five years, as governed by U.S. bankruptcy law.