Exam 15: Sustainability

When a company has found an innovative way to reduce their waste sent to the landfill and generate income as well, this is an example of

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

When it comes to developing an EMA system, there are few reference tools available for environmental management accountants; therefore, organizations are still working to discover what information they need and how it can be reported in an accurate, timely and relevant manner. This scenario is an example of which type of EMA implementation challenge?

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 new managerial accountant at the Recycle Shoppe proposed a method to eliminate waste, recycle a variety of products to enhance sales, and generate profits. The operations manager attended a meeting with the creative manager and proposed that the staff recycle the wood out of the 1,000 old chairs in the warehouse and convert the wood backing into custom picture frames. The operations manager stated that the old wooden chairs in the basement are a fire hazard. The managerial accountant believes that the cost to convert the old wood into custom picture frames is $80,000. The managerial accountant forecasts earnings from the sale of the custom picture frames at $54,000. Compute the payback period, in years. Which of the following illuminates both internal and external costs to give the manager a complete set of information about how to generate cost-effective solutions to environmental and social concerns?

Which of the following collects information from the world's largest companies each year and disseminates that information to institutional investors and other stakeholders?

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?

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?

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?

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

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)?

Sustainability Accounting Standards Board (SASB)is attempting to standardize the sustainability reporting so that the reports are comparable between companies within the same industry.

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?

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

A company can achieve cost savings by becoming more sustainable. Which of the following is an example of the way a company can reduce costs through sustainability?

Traditional performance management systems can be adapted to include measures of environmental costs, savings, and liabilities. The percentage of employees participating in a diabetes walk is an example of a key performance indicator (KPI)classified under which perspective of the balanced scorecard?

At Lowry Company, the production staff does not share information with the environmental staff. This scenario is an example of which type of EMA implementation challenge?

Materials flow accounting (MFA)reconciles physical output with all physical inputs.

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

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