Roberts 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 2012 to 2013?

Question

Roberts 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 2012 to 2013?

Quizplus · Accepted Answer

From the table, we can see that the environmental quality costs decreased from $1,062,000 in 2012 to $1,000,000 in 2013. Therefore, the change in environmental costs from 2012 to 2013 is $62,000.

Roberts Corporation, Reported the Following Operating Costs and Environmental Quality