environmental management accounting Flashcards
what is environmental management accounting
generation and analysis of financial and non financial information to support environmental management processes within organisations
why do we need environmental management accounting
- need to be aware of impact and dependancy on the environment
- need to be aware of the costs and obligations that arise due to these impacts and dependencies
what does impact and dependencies mean in terms of this
- Dependencies – how current and potential environmental, social and governance issues can aect the organisation’s ability to create and maintain value.
- Impacts – how an organisation positively or negatively aects environmental, societal and governance issues.
what are prevention costs
costs of activities undertaken to prevent environmental impacts before they occur
what are detection costs
cost involved with establishing wether activity comply with environmental standards
what is internal failure
cost of activities that must be undertaken when contaminants and waste have been created by a business but not released into the environment
what is external failure
cost arising when an organisation releases waste into the environment
what is definition of conventional as a classification
ordinary use of equipment, material and overhead costs where the environment would benefit from decreased use
what does potentially hidden mean as a classification
costs hidden in overheads or other categorisation
what does contingent mean as a classification
costs hidden in overheads or other categorisations
what does image and relationship mean as a classification
costs incurred to manage perception/image
what’s the difference between externalised and internalised costs
externalised = negative effects felt by society as a whole
internalised = impacts are contained within the organisation
