Opie 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 2012 to 2013?

Question

Opie 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 2012 to 2013?

Quizplus · Accepted Answer

To find the change in environmental costs, we need to look at the difference between the environmental quality costs for 2012 and 2013. From the table, we can see that the environmental quality costs for 2012 are $370,000 and for 2013 they are $329,000. To find the change, we subtract 2012 costs from 2013 costs: $329,000 - $370,000 = -$41,000. Since the question asks for the change in costs, we need to consider the negative sign and conclude that there was a decrease in environmental quality costs of $41,000 from 2012 to 2013. Therefore, the best choice is B.

Opie Corporation Reported the Following Operating Costs and Environmental Quality