At the beginning of the year, Lombardi Company 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: For the current year, detection costs are what percentage of operating costs?

Question

At the beginning of the year, Lombardi Company 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:  For the current year, detection costs are what percentage of operating costs?

Quizplus · Accepted Answer

To calculate the percentage of detection costs relative to operating costs for the current year, we need to divide detection costs by operating costs and then multiply by 100.

For the current year: 
Detection costs = $1,520,000 
Operating costs = $162,800,000

Therefore, (Detection costs / Operating costs) x 100 = ($1,520,000 / $162,800,000) x 100 = 0.93%

So the answer is C, 0.93%.

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