Cost-of-Quality (COQ) Report: Environmental Management You are given the following environmental quality-related costs: Required 1. Prepare a cost-of-quality (COQ) report of environmental management...

Cost-of-Quality (COQ) Report: Environmental Management You are given the following environmental quality-related costs:

Required

1. Prepare a cost-of-quality (COQ) report of environmental management for the year. Determine subtotals for each of the four reporting categories, and express each subtotal as a percentage of total operating expenses ($10,000,000) for the year. (Hint: Classify the pollution-control costs as internal failure costs, under the assumption that the process pollutes and that the pollution-control equipment used by the company controls the release of pollutants into the environment.) 2. Based on the report you prepare, what conclusions can you draw regarding the company’s environmental quality performance for the year? 3. Can you offer management suggestions for the design of an effective cost-of-quality reporting system for the environmental program? (That is, what would make for a good reporting system?)