1. Shell analyzes environmental costs for oil refining operations: Prevention ($3,000,000), Detection ($2,000,000), Internal failure ($1,500,000), External failure ($1,000,000).
   • Requirements:
     • Classify environmental costs by cost category while considering revenue recognition guidelines.
     • Calculate the environmental cost per unit of production and allocate costs accordingly.
     • Prepare an environmental cost analysis report with revenue recognition implications.
     • Recommend strategies to reduce environmental costs while adhering to revenue recognition principles.
     • Evaluate the impact of revenue recognition on corporate social responsibility initiatives related to environmental cost management.