At the Beginning of the Year, Paris, SA

Essay

At the beginning of the year, Paris, SA., initiated an environmental cost reduction program. To help assess the impact of the environmental cost reduction improvement program, the following data was collected for the current and preceding year:
Required:

a.
Compute each category of environmental quality costs as a percentage of operating costs for each year.
Prevention costs
Detection costs
Internal failure costs
External failure costs
b.
How much has profit increased as a result of the environmental cost reduction improvements?