Exam 15: Sustainability

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

The quantity and cost of purchasing hazardous materials is included in the Purchases account for all materials.This scenario is an example of which type of EMA implementation challenge?

The cost of fabric to produce reusable grocery bags would be categorized as what type of cost by an environmental management accounting system (EMA)?

Which of the following is not an example of a cost reduction reason to support environmental sustainability?

Currently,the SEC does not require publicly-held corporations to disclose the costs related to remediation of contaminated sites.

The costs associated with hazardous materials transportation are combined with other overhead costs in Horning Corporation's current accounting system.This scenario is an example of which type of EMA implementation challenge?

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?

Traditional performance management systems can be adapted to include measures of environmental costs,savings,and liabilities.The number of local,organic products available at a grocery store is an example of a key performance indicator (KPI)classified under which perspective of the balanced scorecard?

Rubber City Cycles manufactures carbon fiber bicycle frames for professional racing and avid amateur cyclists.Rubber City has found a CNC (computer numerical control)machine that will significantly reduce manufacturing waste while improving the quality of the frames.The new CNC machine will increase annual fixed costs by $13,750,but will decrease variable cost per unit by $150.Rubber City expects to sell 750 frames next year. Annual data for the current system are as follows: By what amount will Rubber City's operating income increase (decrease)if they purchase the new CNC machine?

Which of the following items does not represent physical information in an environmental management accounting system?

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 percentage of recycled-content used in the Stow City Schools job (using pounds).

Which of the following is a reason an organization would pursue sustainability?

Which of the following organizations are continually working to develop and improve environmental reporting standards?

People's Public Power is an electric utility company.The new CEO is interested in implementing new projects that will not only benefit the environment,but will also benefit the company through cost savings.One of the proposed projects is to offer a paperless,online billing solution for its customers in Green Township.Preliminary market research indicates that participation in the paperless option will be between 20 - 30% of customers. Total costs for the paperless system are projected to be $100,000 per quarter,which are comprised solely of fixed costs for IT personnel and computer hardware.The CEO has asked you to perform an analysis of the proposed paperless billing system. Historical costs for the current paper-based system are as follows: Requirements: a.Using the historical costs calculate the variable costs per bill under the current system. b.The company projects that next quarter 650,000 bills will be mailed to customers.What is the projected cost savings if the maximum number,30%,of customers choose the paperless system? c.What is the projected cost savings if the minimum number,20%,of customers choose the paperless system?

An organization faces many challenges when implementing an environmental accounting (EMA)system.Which of the following inherent challenges must an organization overcome when it finds that its traditional accounting system does not track information regarding lost sales due to environmental regulation?

There are several reasons an organization might pursue sustainable initiatives."Increasing pressure from customers has pushed a utility company to maintain average rates for electricity that are lower than the national average." This situation is an example of which type of reason to implement sustainable initiatives?

An EMA system must make visible the environmental costs hidden in overhead by a traditional accounting system.

For maximum impact,a firm should initially focus on pollution control and cleanup measures.

The environmental staff and technical and production staff of a corporation are located in two different offices,in two different cities.This scenario is an example of which type of EMA implementation challenge?

The total volume of water use associated with the processes and products of a business is