Reference no: EM132767288
The Lake Loon Conservation Authority (LLCA) is a struggling partnership of local government agencies working toward wise management of the water and land resources of the Lake Loon watershed. The watershed is also home to a large area of valuable farmed land.
The expenses for the current year are typical of the past few years:
settlement of property damage claims: $1,000,000
pollution remediation: $500,000
water monitoring and inspection stations: $350,000
fines for non-compliance with environment laws: $300,000
consultant costs to identify conservation concerns: $200,000
lake and land restoration: $200,000
watershed studies to understand ecosystem: $100,000
Problem 1: Using the theory behind cost of quality (COQ) and the specific expense data above, what is your recommendation for revising the annual expenditures of LLCA?
a) Increase internal failure costs.
b) Increase external failure costs
c) Increase prevention and appraisal costs.
d) Increase total quality costs.