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

question 146

Multiple Choice

At the beginning of the year, Grant Company initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data were collected for the current and preceding year:
$\begin{array}{lrr}& \underline{\text {Preceding Year}}& \underline{\text {Current Year}}\\\text { Operating costs } & \$ 3,000,000 & \$ 3,000,000 \\\text { Designing products } & 3,000 & 4,500 \\\text { Auditing environmental activities } & 7,500 & 12,000 \\\text { Recycling scrap } & 60,000 & 45,000 \\\text { Disposing of toxic waste } & 120,000 & 75,000 \\\text { Testing for contamination } & 15,000 & 30,000 \\\text { Cleaning up oil spills } & 105,000 & 82,500\end{array}$
-Refer to the figure.For the current year,what percentage of operating costs are detection costs?

• A)0.14%
• B)0.40%
• C)1.00%
• D)1.40%

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Definitions:

Regression Analyses

Statistical methods used to estimate the relationships among variables, often used to predict a key variable based on others.

Forecasting

The practice of predicting future trends, demands, or events based on historical data and analysis.

Predicting

The process of forecasting future events, outcomes, or trends based on current or historical data, using various statistical, mathematical, or computational techniques.

Future

A period of time that has not yet happened but is considered in terms of potential events or developments.