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A manufacturer includes environmental costs in product costs. Total environmental costs for the previous period were as follows:
Staff training on environmental awareness
50
Supplier compliance monitoring
15
Waste disposal costs
85
-Site feasibility studies
10
Site clean-up costs
40
5
4
1
8
Off-set costs
Protective equipment costs
Certification costs
External failure costs
Total
218
What is the total of these costs that will be classified as environmental prevention costs?
A $50,000
B $64,000
C $79,000
D $80,000
In this question the answer is b)$64000
but I got confused why the certification cost is not included in the prevention cost sir
Certification cost is also one type of Environmental prevention cost Isnt it sir ?
Can you please do clarify it sirPreventative are implementing processes that minimise waste generation, investing in environmentally friendly technologies, or training employees on relevant practices.
So, essentially taking proactive measures to avoid potential environmental issues rather than just addressing them after they arise.
Certification wouldn’t be a measure that is obtained by the company to show it does this right!
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