Final Exam Flashcards
Financial Accounting
Represent financial performance for an external audience
Managerial Accounting
Aid decision making for an internal audience
Variable Costs
Vary w/ production and activity. Includes raw materials, packaging, utilities, etc.
Fixed Costs
Don’t vary with activity. Includes rent, indirect labor, administration
Overhead Accounts
Fixed costs for a business that cannot be charged to a single department, like rent or heating
Full Cost Accounting
Identifying all EHS costs- all costs are allocated to products (throughout product life cycle) for current operations
Total Cost Assessment
Evaluates investments into projects, capitol improvements, etc. - EHS costs using EHS cost data, appropriate time horizons, and standard financial indicators
Direct Costs
Equipment, raw materials, labor, utilities, administration
Hidden Costs
Time to manage EHS compliance, EHS fines and penalties, workers compensation
Contingent Liability Costs
Potential future workers comp or insurance costs.Future fines.
Benefits of EHS accounting
Reduce EHS costs, improve EHS performance, gain competetive advantage, promote accurate product pricing.
Typical Uses of EHS Accounting
Decision making, cost control initiatives, choosing waste management, choosing raw materials.
Examples of Lagging Indicators
Pounds of haz waste generated, permit violations amounts and costs, number of incidents.
Examples of Leading Indicators
Audits completed, employees completed training, haz waste storage area inspections completed, percentage of job descriptions updated to reflect ehs duties.
Types of Performance
Compliance, environmental impacts, policy implementation, accomplishing targets, control of mgmt system, control of operations, continual improvement.
