Question

In: Accounting

Some waste, scrap or by-product materials have little value. In fact, such materials represent liabilities for...

Some waste, scrap or by-product materials have little value. In fact, such materials represent liabilities for companies in that the materials require companies to incur significant disposal costs. Alternatively, some companies have historically found “cheap” ways to dispose of such materials. For example, on Friday April 2nd 1993, residents of Brazos County, Texas, U.S.A., stumbled across 19 cans of industrial waste that were scattered along the banks of the Navasota River. The cans were labelled “lacquer thinner” but the actual contents which were leaking into the ground and the river were not immediately known. The cans appeared to have been thrown from a vehicle travelling over on a nearby road. Some cans were heavily dented, some were capped with rags and all of them appeared to be scattered in a random pattern. State and county officials worked most of Saturday April 3rd 1993 cleaning up the site.
Source: Chuck Squatriglia, “Solvent Cans Dumped near Navasota River” Bryan-College Station Eagle (April 4, 1993), p.A9. Courtesy: Bryan-College Station Eagle.

(i)Comment on whether this method of disposing of industrial waste is a “cheap” alternative.
(ii) Briefly discuss the ethical and legal implications of disposing of industrial waste in this manner.
(iii) What actions can people take to reduce these kinds of incidents?
(iv) Ethically, what obligation does the vendor/manufacturer of these industrial materials have to the consumers and society as a whole.

Solutions

Expert Solution

As the information provided in the case study of "Solvent Cans Dumped near Navasota River", the waste that the waste cans are dumped near the river.

i)This method of disposing waste is may be cheap but not the solution to dispose off waste properly. Instead, these cans can be reused that would decrease the waste.

ii) To ensure proper diposing off the waste that adversely affects the land resources and water, different statutes and laws can be implemented by the authorities as a part of leagl implication.

Ethical isues states that the person travelling from there should not throw the garbage and industry should organize other cheap alternatives.

iii) People can reuse the cans.

Alternative cheap solutions to be followed by the industry to dispose off the waste

iv) As these products have a bad implication on society and people as a whole. It is the obligation of manufacturers to switch to decomposable substances so that it does not accumulate and harm the water resources as well as land resources.


Related Solutions

Contingent liabilities are a little quirky as far as accounting goes, as they represent something that...
Contingent liabilities are a little quirky as far as accounting goes, as they represent something that may or may not be a liability. Brainstorm and describe your own example of a contingent liability. Post your scenario and state how you would handle the accounting (record/disclose/do not disclose).
A piece of equipment having a negligible salvage and scrap value if estimated to have a...
A piece of equipment having a negligible salvage and scrap value if estimated to have a MACRS and straight line recovery period of 5 years. The original cost of ther equipment was $500,000. Determin the depreciation charge of the euipment for the second yeqr if straight line depreciation is used and the percentage of the original investment paid off in the first 2 years.
A machine costs $17053 and is expected to have a scrap value of $2171 whenever it...
A machine costs $17053 and is expected to have a scrap value of $2171 whenever it is retired. Operating and Maintenance costs are $1517 for the first year and expected to increase by $1457 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years. Note: round your answer to two decimal places, and do not include spaces, currency signs,...
A machine costs $19650 and is expected to have a scrap value of $2387 whenever it...
A machine costs $19650 and is expected to have a scrap value of $2387 whenever it is retired. Operating and Maintenance costs are $1398 for the first year and expected to increase by $1853 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it...
A machine costs $17,026 and is expected to have a scrap value of $2,432 whenever it is retired. Operating and Maintenance costs are $1,268 for the first year and expected to increase by $1,784 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
An equipment costs Rs. 1,70,000 and will have a scrap value of Rs. 25,000 at the...
An equipment costs Rs. 1,70,000 and will have a scrap value of Rs. 25,000 at the end of its useful life of 10 years. If the interest is compounded at 10% per year, what are the cost of replacement, the present worth and the capitalized cost?
Is the cost of disposing hazardous waste materials resulting from factory operations a product cost or...
Is the cost of disposing hazardous waste materials resulting from factory operations a product cost or a period cost? Explain your statements/arguments.
Q1. Should a firm have as much as possible OCL(operating current liabilities) and as little as...
Q1. Should a firm have as much as possible OCL(operating current liabilities) and as little as possible OCA(operating current assets)? Briefly explain.
An industrial sewing machine costs $5389 and is expected to have a scrap value of $3570...
An industrial sewing machine costs $5389 and is expected to have a scrap value of $3570 whenever it is retired. Operating and Maintenance costs are $1585 for the first year and expected to increase by $2270 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years. Note: round your answer to two decimal places, and do not include spaces,...
An industrial sewing machine costs $5,641 and is expected to have a scrap value of $3,792...
An industrial sewing machine costs $5,641 and is expected to have a scrap value of $3,792 whenever it is retired. Operating and Maintenance costs are $1,038 for the first year and expected to increase by $2,612 thereafter. If the MARR is 11%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine. The service life of this machine is 5 years.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT