Maroone 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 2016 to 2017?

Question

Maroone 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 2016 to 2017?

Quizplus · Accepted Answer

To find the change in environmental costs from 2016 to 2017, we need to subtract the environmental quality costs of 2016 from the environmental quality costs of 2017. This gives us $198,000 - $132,000 = $66,000. Therefore, the answer is B.

Maroone Corporation Reported the Following Operating Costs and Environmental Quality