In terms of the five tiers of environmental costs, which of the following costs would be classified as a contingent cost?

Question

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Contingent costs are costs that are uncertain and may or may not be incurred in the future, but are dependent on certain events or circumstances. Loss of future sales due to public awareness of the firm's non-environmentally friendly activities is an example of a contingent cost as it depends on the public's reaction to the firm's activities. Recycling of packaging materials (A) and inspecting processes and products (B) are examples of prevention costs. Cost of cleaning up following a chemical spillage (D) is an example of a failure cost.

In Terms of the Five Tiers of Environmental Costs, Which