Environmental Factors (1) Flashcards
WHat are general piblic becoming more concious of?
The environment
How are environmental costs such as energy costs treated?
As production overheads and therefore hidden from management scrutiny
What do businesses often face with environmental costs?
Often face difficulties with defining, identifying and controlling
Examples of typical environmental costs?
Consumables and raw materials
Transport and travel
Waste and effluent disposal
Water consumption
Energy
What is environmental management accounting?
The generation and analysis of both financial and non-financial info to support internal environmental management processes
Benefit of understanding environmental costs (significant)
Such costs may be significant for some companies, therefore once identified they can be controlled and reduced
Benefit of understanding environmental costs (regulation)
An increasing worldwide regulation and a need for regulatory reporting of environmental costs
Benefit of understanding environmental costs (ethical)
Ethical issues - businesses need to know how their operations affect the environment
Benefit of understanding environmental costs (brand)
Improved brand image
Benefit of understanding environmental costs (individual products)
Associating environmental costs with individual products leads to more accurate pricing and improved profitability
What are environmental prevention costs?
Costs of activities undertaken to prevent environmental impacts before they occur
What are environmental detection costs?
Costs involved with establishing whether activities comply with environmental standards and policies
What are environmental internal failure costs?
Costs of activities must be undertaken when contaminants and waste have been created by a business but not released into environment
What are environmental external failure costs?
Costs that arise when a business releases harmful waste into the environment
What are convential costs?
ordinary use of equipment, material and overhead costs where environment would benefit from decreased use
What are potentially hidden costs?
Costs hidden in overheads
What are contingent costs?
Costs that may be incurred at a later date
What are image and relatilnship costs?
Costs incurred to manage perception/image
Example of environmental prevention costs?
Forming environmental policies
Performing site and feasibiltiy studies
Stafdf training
Example of environmental detection costs?
Developing performance measures
Monitoring, testing and inspection costs
Site survey costs
Example of environmental internal failure costs?
Maintaining pollution equipment
Recycling scrap
Example of environmental external failure costs?
Cleaning up oil spills
Decontaminating land
