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 2013 to 2014?

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 2013 to 2014?

Quizplus · Accepted Answer

The environmental costs in 2013 were $1,200,000 and in 2014 they were $426,000. The change in environmental costs from 2013 to 2014 is $1,200,000 - $426,000 = $774,000.

Roberts Corporation Reported the Following Operating Costs and Environmental Quality