Exam 15: Sustainability

Integrating sustainable business practices may help to identify new revenue streams for an organization.

For an EMA system to be effective, accounting information will need to be tagged with multiple identifiers to serve various information needs.

The system used for the identification, collection, analysis, and use of monetary and physical information is known as?

Sustainability is concerned not only with the impact on the environment, but also with the impact on people and profit. The "triple bottom line" measures an entity's impact on profit, people, and planet. A manufacturing firm that realized a 10% increase in total shareholder return is impacting which element of the triple bottom line?

In order to provide managers with environmental information, accountants will need to rethink their traditional views on what constitutes a "cost" and do which of the following?

The costs incurred by a manufacturer of lawn mowers to develop a method to reduce carbon dioxide emissions from its products would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost to a corporation's image and goodwill as a result of an oil spill would be categorized as what type of cost by an environmental management accounting system (EMA)?

Which of the following is a challenge an organization would face in implementing an environmental management accounting system?

Financial accounting information focuses on historical transactions and rarely includes future-oriented costs. For an EMA system to be effective in helping management make good decisions, it will need to include

The current accounting system for Moss Company does not include an estimate of the cost of losing access to markets with environmental-related product restrictions. This scenario is an example of which type of EMA implementation challenge?

There are several reasons an organization might pursue sustainable initiatives. At one organization, employees approached management about implementing green practices throughout the business. This situation is an example of which type of reason to implement sustainable initiatives?

Traditional accounting systems focus on historical information, while EMA systems must also utilize future-oriented information.

Walker Corporation's current accounting system does not include an estimate of the cost of lost sales resulting from poor environmental performance. This scenario is an example of which type of EMA implementation challenge?

Possible future liabilities related to pollution may negatively affect an organization's ability to access credit.

R-Cubed manufactures custom playground equipment from recycled plastics for city school districts. The school districts are required to use a certain percentage of recycled materials to comply to its state grants. As a result, R-Cubed tracks both virgin (non-recycled)and recycled materials used to manufacture its playground equipment. R-Cubed uses a predetermined manufacturing overhead rate of $7.00 per direct labor hour. Here is a summary of the materials and labor used on a recent job for Stow City Schools: Calculate the total cost of the Stow City job.

Traditional performance management systems can be adapted to include measures of environmental costs, savings, and liabilities. Revenue received from recycling scrap metal at a manufacturing plant is an example of a key performance indicator (KPI)classified under which perspective of the balanced scorecard?

What are the three elements of the "triple bottom line"?

Implementing sustainable business practices may help an organization to grow its market share.

For maximum effectiveness sustainable strategies are often implemented at which stage of an organization's value chain?

Which of the following items represent physical information in an environmental management accounting system?