Exam 15: Sustainability

Traditional performance management systems can be adapted to include measures of environmental costs,savings,and liabilities.The number of training seminars related to sustainability offered by a company is an example of a key performance indicator (KPI)classified under which perspective of the balanced scorecard?

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

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?

There are several reasons an organization might pursue sustainable initiatives."As a result of significant increase in the number of non-compliance notices it received in a recent year,an organization increased sustainability training and focused management attention on sustainability." 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 annual cost of stamping waste,including both the materials cost and the disposal cost?

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 the breakeven point in units increase (decrease)if Rubber City purchases the new CNC machine?

Simon Manufacturing is conducting preliminary research into installing a geothermal heat pump to heat and cool its factories and offices.The initial cost of installing the new system is $245,000;however,Simon will save $35,000 annually on its heating and cooling costs.The system has an expected life of 15 years. What is the payback period,in years,for the geothermal heat pump?