Question

Using the abbreviations listed below, indicate for each of the costs whether the cost should be classified as:

P = Prevention D = Detection I = Internal Failure E = External Failure N = none of the above

1. Inspecting products and processes

2. Verifying supplier environmental performance

3. Testing for contamination

4. Obtaining ISO 14001 certification

5. Carrying out environmental studies

6. Operating pollution control equipment

7. Cleaning up a polluted lake

8. Recycling scrap

9. Recycling products

10. Cleaning up oil spills

Answer 1

1. Inspecting products and processes	Detection
2. Verifying supplier environmental performance	Detection
3. Testing for contamination	Detection
4. Obtaining ISO 14001 certification	Prevention
5. Carrying out environmental studies	Prevention
6. Operating pollution control equipment	Internal Failure
7. Cleaning up a polluted lake	External Failure
8. Recycling scrap	Internal Failure
9. Recycling products	Prevention
10. Cleaning up oil spills	External Failure