Carborundum 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?
A) $12,000
B) $41,000
C) $37,000
D) $750,000

Question

Carborundum 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?
A) $12,000 
B) $41,000 
C) $37,000 
D) $750,000

Quizplus · Accepted Answer

To find the change in environmental costs from 2016 to 2017, we need to calculate the difference in environmental quality costs between those two years. In 2016, the environmental quality costs were $170,000 and in 2017, they were $207,000. Therefore, the change in environmental costs from 2016 to 2017 is $207,000 - $170,000 = $37,000. Therefore, the correct answer is choice C.

Carborundum Corporation Reported the Following Operating Costs and Environmental Quality