Carborundum Corporation Reported the Following Operating Costs and Environmental Quality

question 79

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 2017 to 2018?

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

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous transactions.

Insufficient Funds

Insufficient funds occur when an account does not have enough money available to cover a payment or a withdrawal, leading to a failed transaction.

Remittance Advice

A document sent by a customer to a supplier, notifying the supplier that an invoice has been paid, usually accompanying the payment.

Invoice

The bill that the seller sends to the buyer.