CHAPTER 14 Quality and Environmental Cost Management COLLABORATIVE LEARNING EXERCISE OBJECTIVE During the past four years, Monticello Company has made significant efforts to improve its environmental performance Two of the strategic objectives that have received considerable attention are those of minimizing hazardous materials and minimizing release of liquid residues Actually, two objectives are associated with hazardous waste First, the company wants to reduce the amount produced Second, the company wants to shift the ways of dealing with hazardous waste from landfill and deep well injections to such methods as incineration, treatment, and recycling Lori Anders, president of Monticello, also required the Accounting Department to track and report on environmental progress Internal and external environmental progress reports are prepared The following data pertain to the two strategic objectives that have been emphasized Hazardous waste objective (measure is in tons): Year 2010 2011 2012 2013 Incinerated 2,000 4,000 8,000 15,000 Treated 2,000 2,000 3,000 3,000 Recycled 1,000 2,000 3,000 3,500 Landfilled 35,000 30,000 25,000 15,000 Injection 10,000 10,000 7,000 3,500 Total 50,000 48,000 46,000 40,000 Liquid residue objective: Year 2010 2011 2012 2013 Tons of Sulfates 100 92 81 73 The cost of landfilling hazardous waste is $50 per ton; injection is $60 per ton; incineration is $70 per ton; treatment is $100 per ton; and recycling produces a benefit of $10 per ton Recycling, however, can be done only for a certain type of hazardous waste and only with a 70 percent successful yield Treatment is also limited to certain types of waste Fines, pollution control equipment, and expected cleanup costs are $4,000 per ton for the liquid residues Required: Form groups of three to five members, where the total number of groups is at least four Assign the letters A through D to each group Groups with the A designation will solve Requirement 1, B will solve Requirement 2, C will solve Requirement 3, and D will solve Requirement The groups will then share their answers with the other groups Prepare a bar graph for hazardous waste that shows trends Comment on the progress revealed © 2015 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 2 Prepare a pie chart for hazardous waste for the years 2010 and 2013 Comment on the progress in reducing reliance on landfills and injections Prepare a bar graph for the liquid residue Calculate the environmental cost for hazardous waste and liquid residue in 2010 and 2013 Comment on environmental progress as measured by the financial outcomes Is it possible that the savings are understated? Explain © 2015 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ... landfills and injections Prepare a bar graph for the liquid residue Calculate the environmental cost for hazardous waste and liquid residue in 2010 and 2013 Comment on environmental progress as