At the Beginning of the Year, Molybdenum Company Initiated an Environmental

question 78

Multiple Choice

At the beginning of the year, Molybdenum Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data was collected for the current and preceding year: $\begin{array}{lrr}&\text { Freceding Year }&\text { Current Year }\\\text { Operating costs } & \$ 2,400,000 & \$ 2,400,000 \\\text { Training employees } & 30,000 & 48,000 \\\text { Inspecting processes } & 7,000 & 8,000 \\\text { Operating pollution control equipment } & 32,000 & 50,000 \\\text { Maintaining pollution equipment } & 60,000 & 28,000 \\\text { Devel oping environmental performance measures } & 10,000 & 12,000 \\\text { Cleaning up lake } & 36,000 & 24,000\end{array}$ For the current year, detection costs are what percentage of operating costs?

• A)3.333%
• B)0.833%
• C)0.500%
• D)0.333%

---

Definitions:

Ordinary Care

The degree of caution and attention to duty that a reasonably prudent person would use in similar circumstances.

Charge Back Rights

Charge back rights allow consumers to dispute a charge and potentially secure a refund for transactions found to be fraudulent or problematic.

Check Conversion

The process by which a paper check is transformed into an electronic payment, speeding up the transaction process and reducing the need for physical handling of the check.

Automated Clearing House

An electronic network for financial transactions, used for the transfer of funds between bank accounts, including direct deposits and bill payments.