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At the Beginning of the Year, Paris, SA ACompute Each Category of Environmental Quality Costs as a Percentage

question 81

Essay

At the beginning of the year, Paris, SA., 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:  Preceding Year  Current Year  Operating costs £4,000,000£4,000,000 Designing products 18,00020,000 Auditing environmental activities 40,00064,000 Recycling scrap 200,000180,000 Restoring land to natural state 360,000320,000 Operating polluti on control equipment 250,000240,000 Testing for contamination 80,00080,000\begin{array} { l r r } & \text { Preceding Year } & \text { Current Year } \\\text { Operating costs } & £ 4,000,000 & £ 4,000,000 \\\text { Designing products } & 18,000 & 20,000 \\\text { Auditing environmental activities } & 40,000 & 64,000 \\\text { Recycling scrap } & 200,000 & 180,000 \\\text { Restoring land to natural state } & 360,000 & 320,000 \\\text { Operating polluti on control equipment } & 250,000 & 240,000 \\\text { Testing for contamination } & 80,000 & 80,000\end{array}
a.Compute each category of environmental quality costs as a percentage of operating costs for each year.Prevention costsDetection costsInternal failure costsExternal failure costs
b.How much has profit increased as a result of the environmental cost reduction improvements?

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Definitions:

Ingestion

The method by which food, liquids, or other substances are introduced into the body through swallowing or absorption.

Active Transport

A cellular process that requires energy to move substances across cell membranes against a concentration gradient.

Concentration Gradient

The gradual difference in the concentration of solutes in a solution between two regions. In biology, it often refers to differences across a membrane.

Carrier

A molecule or protein that transports substances across a cell membrane, or a person or animal that transmits a disease-causing agent without showing symptoms.

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