
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 42
Environmental Cost Report
At the end of 2013, Bing Pharmaceuticals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:
Required:
1. Prepare an environmental cost report by category. Assume that total operating costs are $150,000,000.
2. Use a pie chart to illustrate the relative distribution percentages for each environmental cost category. Comment on what this distribution communicates to a manager.
At the end of 2013, Bing Pharmaceuticals began to implement an environmental quality management program. As a first step, it identified the following costs in its accounting records as environmentally related for the calendar year just ended:

Required:
1. Prepare an environmental cost report by category. Assume that total operating costs are $150,000,000.
2. Use a pie chart to illustrate the relative distribution percentages for each environmental cost category. Comment on what this distribution communicates to a manager.
Explanation
(1) Prepare Environmental Cost Report:
...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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