Environmental Factors (1)

Question 1

WHat are general piblic becoming more concious of?

Answer 1

The environment

Question 2

How are environmental costs such as energy costs treated?

Answer 2

As production overheads and therefore hidden from management scrutiny

Question 3

What do businesses often face with environmental costs?

Answer 3

Often face difficulties with defining, identifying and controlling

Question 4

Examples of typical environmental costs?

Answer 4

Consumables and raw materials

Transport and travel

Waste and effluent disposal

Water consumption

Energy

Question 5

What is environmental management accounting?

Answer 5

The generation and analysis of both financial and non-financial info to support internal environmental management processes

Question 6

Benefit of understanding environmental costs (significant)

Answer 6

Such costs may be significant for some companies, therefore once identified they can be controlled and reduced

Question 7

Benefit of understanding environmental costs (regulation)

Answer 7

An increasing worldwide regulation and a need for regulatory reporting of environmental costs

Question 8

Benefit of understanding environmental costs (ethical)

Answer 8

Ethical issues - businesses need to know how their operations affect the environment

Question 9

Benefit of understanding environmental costs (brand)

Answer 9

Improved brand image

Question 10

Benefit of understanding environmental costs (individual products)

Answer 10

Associating environmental costs with individual products leads to more accurate pricing and improved profitability

Question 11

What are environmental prevention costs?

Answer 11

Costs of activities undertaken to prevent environmental impacts before they occur

Question 12

What are environmental detection costs?

Answer 12

Costs involved with establishing whether activities comply with environmental standards and policies

Question 13

What are environmental internal failure costs?

Answer 13

Costs of activities must be undertaken when contaminants and waste have been created by a business but not released into environment

Question 14

What are environmental external failure costs?

Answer 14

Costs that arise when a business releases harmful waste into the environment

Question 15

What are convential costs?

Answer 15

ordinary use of equipment, material and overhead costs where environment would benefit from decreased use

Question 16

What are potentially hidden costs?

Answer 16

Costs hidden in overheads

Question 17

What are contingent costs?

Answer 17

Costs that may be incurred at a later date

Question 18

What are image and relatilnship costs?

Answer 18

Costs incurred to manage perception/image

Question 19

Example of environmental prevention costs?

Answer 19

Forming environmental policies
Performing site and feasibiltiy studies
Stafdf training

Question 20

Example of environmental detection costs?

Answer 20

Developing performance measures
Monitoring, testing and inspection costs
Site survey costs

Question 21

Example of environmental internal failure costs?

Answer 21

Maintaining pollution equipment

Recycling scrap

Question 22

Example of environmental external failure costs?

Answer 22

Cleaning up oil spills

Decontaminating land