Exam 15: Sustainability

The G4 framework is organized around three categories. Which of the following is not one of those categories?

Which of the following items do not represent monetary information in an environmental management accounting system?

Sustainability reporting is now a required practice in the United States.

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?

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?

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

Integrating sustainable business practices may help to identify new revenue streams for an organization.

Comprehensive reports disclose all indicators related to each identified material aspect in the CSR report.

The "triple bottom line" reports on three factors: profits, people, and planet.

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

When Doubletree Hotel in Oregon created a "green" floor, it saw decreased housekeeping costs, laundry costs, and personal consumables costs. This situation is an example of which type of reason to implement sustainable initiatives?

Environmental management accounting (EMA)utilizes three types of information for internal decision making.

Government grants and tax credits increase the costs of implementing sustainability measures.

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

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

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

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

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

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.

Traditional performance management systems can be adapted to include measures of environmental costs, savings, and liabilities. The amount of electricity used by an oil refinery is an example of a key performance indicator (KPI)classified under which perspective of the balanced scorecard?