A Case Study in Managing and Accounting for Pollution Control

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2014-01-15

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University of Hawaii at Manoa

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The quality of the environment is currently a primary concern. Because industry is a major polluter and is easier to regulate than individual citizens , stringent industry anti-pollution legislation have recently been enacted. This legislation set up water, air, noise, and solid wastes pollution standards. To meet these standards can be extremely costly. Professor Goldman estimates that the annual costs of operating pollution control facilities can be as much as 10 percent of the total expenditure for some companies. For some firms, pollution control costs may run as much as 4 percent of sales. Not only are the costs large, but the required amounts are often unknown. If the standards becomes more stringent, the amounts required may increas.

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i, 39 pages

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