Figure 14-7 At the beginning of the year, Andrew 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:

-Refer to Figure 14-7.For the current year, detection costs are what percentage of operating costs?

Question

Figure 14-7 At the beginning of the year, Andrew 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:
 
-Refer to Figure 14-7.For the current year, detection costs are what percentage of operating costs?

Quizplus · Accepted Answer

Detection costs for the current year are $50,000, and operating costs are $6,000,000. Therefore, detection costs are 0.833% of operating costs (50,000 ÷ 6,000,000 = 0.00833 or 0.833%).

Figure 14-7 at the Beginning of the Year, Andrew Company