Exam 15: Sustainability

Communication between environmental,production,and accounting staff is crucial for an EMA system to function effectively.

The cost to install equipment to reduce the emissions of a coal-fired power plant would be categorized as what type of cost by an environmental management accounting system (EMA)?

Which of the following organizations has developed the G4 Guidelines?

The total amount of water consumed by an organization is an example of physical information that may be collected by an EMA.

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?

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

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 local accounting firm that participates in Habitat for Humanity is impacting which element of the triple bottom line?

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)?

Sustainability is an expense item only.An organization choosing sustainability will see reduced profits.

A common definition of ________ is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

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

The categories of costs collected by an EMA system are similar to the costs collected by traditional accounting systems.

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 Fortune 500 company that encourages its employees to use reusable mugs as opposed to Styrofoam cups is impacting which element of the triple bottom line?

Serenity Now Industries manufactures custom fiberglass hulls for luxury yachts and pleasure boats.The current cost accounting system uses machine hours to allocate manufacturing overhead to each job.Serenity estimates that in the coming year it will incur $600,000 in manufacturing overhead costs and use 8,000 machine hours. Depending on the specifications requested by the customer,the hull may use hazardous chemicals that incur greater disposal costs.Serenity's traditional accounting system includes the cost of hazardous waste disposal in with total manufacturing overhead.Serenity is planning to implement an activity based costing system to more accurately assign hazardous waste disposal costs to each job. Expected usage and costs for manufacturing overhead are as follows: During the year,Yacht #633 was started and completed: Requirements: a.Calculate the cost of Yacht #633 using the Serenity's current method of allocating manufacturing overhead. b.Calculate the cost of Yacht #633 using the proposed activity based costing system.How is this information useful to an environmental management accounting (EMA)system?

Sustainability considers not only the needs of the present generation,but also the needs of future generations.

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?

There are several reasons an organization might pursue sustainable initiatives."A legislative act requires retailers to take-back old batteries and electronic devices for recycling or reuse." This situation is an example of which type of reason to implement sustainable initiatives?

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 with 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.

Which of the following items is most likely to be found on an environmental management accounting report?

Environmental sustainability is the primary concern of which of the following types of organizations?