Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 6

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 2018 to 2019?

• A)$12,000
• B)$41,000
• C)$37,000
• D)$750,000

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Definitions:

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Irrational

Lacking reasonable or logical basis; actions or thoughts that are not in alignment with reasonable or sensible thinking.

Aggressive

Pertaining to behavior characterized by assertiveness, hostility, or an intention to cause harm.

Pessimistic Belief

A mindset inclined to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.