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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 39
ENVIRONMENTAL COST REPORT
At the end of 2011, Hender Chemicals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:
Required:
1. Prepare an environmental cost report by category. Assume that total operating costs are $60,000,000.
2. Use a pie chart to illustrate the relative distribution percentages for each environmental cost category. Comment on what this distribution communicates to a manager.
At the end of 2011, Hender Chemicals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:
Required:
1. Prepare an environmental cost report by category. Assume that total operating costs are $60,000,000.
2. Use a pie chart to illustrate the relative distribution percentages for each environmental cost category. Comment on what this distribution communicates to a manager.
Explanation
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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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