Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 47

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. What is the change in environmental costs from 2015 to 2016?

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

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Definitions:

Expected Utility

A theory in economics that calculates the utility of an outcome that is uncertain, by considering all possible outcomes and their probabilities.

Utility

The satisfaction or value obtained by consuming a good or service.

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Insurance coverage that provides income to individuals who are unable to work due to a disability.

Expected Utility

A concept in economics and decision theory that involves making choices under uncertainty to maximize the expected satisfaction or benefit.