Exam 15: Sustainability

A ________ is a measure of the total emissions of carbon dioxide and other greenhouse gases.

Due to the relative infancy of environmental management accounting,the tools utilized are continuously being developed and improved.

In a traditional accounting system,many indirect costs are assigned to overhead because they are difficult to trace to a product or process.Consequently,many environmental costs may be concealed in the overhead account.This is an example of which type of EMA implementation challenge?

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

An oil company received poor publicity after an oil spill in Lake Erie.The costs of the future lost sales resulting from the bad publicity are not included in the results of operations provided to management even though the loss in sales was substantial.This scenario is an example of which type of EMA implementation challenge?

The city of Pittsburgh,Pennsylvania is reviewing proposals for the demolition of historic,but dilapidated,homes in its "Old East End" neighborhood.The homes,many dating back 150 years,contain lead paint,lead pipes,and asbestos insulation that require special disposal at a special landfill at a cost of $50,000. The city conducted a life-cycle assessment (LCA)and discovered that the city could reclaim the old woodwork,bricks of the historic homes,and repurpose the materials to use in a new construction project.The Old Crib Deconstruction Company submitted the lowest bid of $450,000 to properly dismantle the old homes.Construction Junction,which specializes in the sale of reclaimed building materials,has offered to purchase the materials for $375,000. What is the net cost to repurpose the building materials?

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

The cost of monitoring pollutants in the waste-water discharged from a manufacturing plant would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost of wages of workers needed to comply with new EPA standards is included in the Payroll account for all employees.This scenario is an example of which type of EMA implementation challenge?

There are several reasons an organization might pursue sustainable initiatives."Due to rising costs,a manufacturing firm has reduced the amount of plastic used in each of its products,which helps to keep down the cost of raw materials (plastics).The drop in plastic usage also reduces the amount of plastic sent to the landfill after consumer use." This situation is an example of which type of reason to implement sustainable initiatives?

Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products.The average cost for sheet metal is $75 per ton.Gluck's waste disposal company charges $50 per ton to dispose of manufacturing waste.The stamping process currently employed by Gluck generates an average of 120 tons of waste per month. What is the net amount Gluck would save per year if stamping waste could be sold to a recycler for $30 per ton?

Physical information has not been a traditional component of managerial accounting systems.

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)?

Sea Escape Company sells condominiums in Florida.During the recession,the company moved its sales operations to an older building near the beach.The new sales office does not attract new clients and the company cannot retain its employees because the employees resign and they pursue employment at other organizations that offer professional,newer,office facilities.The sales manager conducted a meeting to discuss the business reasons for adopting sustainable business practices.The sales manager asked the operations manager for approval to update the old facilities.The sales manager estimates that the cost to update the building is $150,000.The sales manager estimates that if the proposal to update the old building is approved,the company can generate at least $80,000 in additional sales. Compute the payback period,in years,to recover from the cost of renovations.List and discuss at least three business reasons for adopting sustainable business practices.

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

All of the following represent monetary information in an environmental management accounting system except

The manager at Clean Oceans Unlimited,in Virginia,conducted a recent meeting with the operations manager to discuss the results of a recent waste audit conducted by the city officials and to develop a new sustainability strategy.The manager announced that the engineer has developed a system that filters the storm-water runoff into the canals that flow into the Chesapeake Bay.The cost of the new system is $5,500,000.The new system is expected to eliminate bacteria in run-off water and it is expected to reduce the level of water pollution that flows into the Chesapeake Bay.The new system is expected to generate taxes payable to the company of up to $2,500,000 in storm-water fees each year.The pump is expected to have a life of 20 years. Compute the payback period,in years.With respect to the business,should the manager at Clean Oceans Unlimited implement this new sustainability strategy? Include a discussion about the three factors that relate to sustainability (environmental,economic,and social factors).

The role of accounting in sustainability is limited to mandatory external reporting.

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

An organization faces many challenges when implementing an environmental accounting (EMA)system.Which of the following inherent challenges is an accountant facing when he is having difficulty finding literature regarding "best practices" for environmental accounting?