Exam 14: Quality and Environmental Cost Management

Developing environmental performance measures is considered a(n)

The lowest environmental costs are attainable at the

A quality cost report lists costs for each item within each of four categories.

A defective product is one that does NOT

The assignment of only private costs to individual products is called:

Environmental costs of production and post-purchase costs are examples of environmental product costs.

Activity-based costing facilitates environmental costing by tracing costs to the responsible products.

Full environmental costing is the assignment of only private costs to individual products.

Hannibal Company produces a number of chemical products, two of which are Product X1 and Product X2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Product 1 Product X2 Pounds produced 400,000 1,000,000 Packaging materials (pounds) 120,000 60,000 Energy usage (kilowatt hours) 40,000 20,000 Toxic rel eases (pounds into air) 100,000 20,000 Pollution control (machine hours) 16,000 4,000 Costs of activities: Using packaging materials \ 360,000 Using energy 96,000 Rel easing toxins (fines) 48,000 Operating pollution control equipment 112,000 What is the pollution control cost per unit of Product X2?

In an environmental cost report, environmental costs are grouped into categories and then each category of environmental costs is expressed as a percentage of

The following information pertains to Beige, Inc., for current year: Sales \ 1,000,000 Internal failure costs 150,000 External failure costs 200,000 Apprai sal costs 50,000 Prevention costs 30,000 Cost of goods sold 600,000 Which of the following expresses the quality costs as a percentage of sales? (Round to two decimal places.)

Customers are concerned with product reliability, durability, fitness for use, and conformance to specifications.

The costs incurred because poor quality may or does exist are called:

Product inspection is a(n)

Carbondioxide Chemical produces a number of chemical products, two of which are Product A1 and Product A2. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Froduct A1 Product A2 Pounds produced 200,000 500,000 Packaging materials (pounds) 60,000 30,000 Energy usage (kilowatt hours) 20,000 10,000 Toxic releases (pounds into air) 50,000 10,000 Pollution control (machine hours) 8,000 2,000 Costs of activities: Using packaging materials \ 90,000 Using energy 24,000 Releasing toxins (fines) 12,000 Operating pollution control equipment 28,000 What is the fines cost per unit for toxic releases of Product A1?

Which of the following is NOT an example of a quality performance report?

A goal based on short-run quality goals is the

Costs incurred and paid for by the company are called __________ costs.

Internal failure costs incurred by failure of products to conform to specifications are discovered after sales take place.

At the beginning of the year, Lombardi Company 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: Freceding Year Current Year Operating costs \ 4,500,000 \ 4,500,000 Designing products 3,000 4,500 Auditing environmental activities 7,500 12,000 Recycling scrap 60,000 45,000 Disposing of toxic waste 120,000 75,000 Testing for contamination 15,000 30,000 Cleaning up oil spills 105,000 82,500 For the current year, external failure costs are what percentage of operating costs?