Exam 15: Sustainability

Environmental sustainability should only be the concern of large multinational manufacturing corporations.

The term ________________ has been used to signify the economic savings achieved by producing goods and services with fewer ecological resources.

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

(Net present value table required)Windy Industries, in Chicago, plans to take advantage of the winds blowing in from Lake Michigan. Windy is developing a project to install a wind turbine that would generate electricity and reduce energy costs. The turbine would have an initial cost of $550,000 and would provide a net cost savings of $62,000 per year. The turbine will have a life of 25 years. If Windy assigns a discount rate of 10% to this project, what is the net present value (NPV)of the wind turbine? Present Value of $1 Present Value of Annuity of $1

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?

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?

All of the following are aspects of the subcategory "product responsibility" except

________ may include shareholders, bankers, special interest groups, employees, policy makers, customers, suppliers, or community members.

There are several reasons an organization might pursue sustainable initiatives. "An automobile manufacturer has committed to being the market leader in fuel economy with every new vehicle developed." This situation is an example of which type of reason to implement sustainable initiatives?

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

There are several reasons an organization might pursue sustainable initiatives. "A national hotel chain instituted a paper-saving program that reduced the cost of office paper purchased by 20% annually." This situation is an example of which type of reason to implement sustainable initiatives?

The cost to a corporation's image and goodwill as a result of an oil spill would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost of water used to cool steel beams at a steel mill would be categorized as what type of cost by an environmental management accounting system (EMA)?

The city of Pittsburgh, Pennsylvania conducted a life-cycle assessment (LCA)and is reviewing proposals for the demolition of historic, but dilapidated, homes in its "Old East End" neighborhood. The homes, many dating back 150 years, contain lead paint, lead pipes, and asbestos insulation that require disposal at a special landfill at a total cost of $50,000. A second option for the city is to reclaim the old woodwork, and bricks of the historic homes and repurpose the materials for use in new construction. This Old Crib Deconstruction Company submitted the lowest bid of $450,000 to properly dismantle the old homes. Construction Junction, which specializes in the sale of reclaimed building materials, has offered to purchase the materials for $375,000. Which of the following is a qualitative factor that Pittsburgh should consider in its analysis?

Windy Industries, in Chicago, plans to take advantage of the winds blowing in from Lake Michigan. Windy is developing a project to install a wind turbine that would generate electricity and reduce energy costs. The turbine would have an initial cost of $500,000 and would provide a net cost savings of $57,000 per year. The turbine will have a life of 26 years. What is the payback period, in years, for the wind turbine?

A ________ is a measure of the total emissions of carbon dioxide and other greenhouse gases.

Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $80 per ton. Gluck's waste disposal company charges $70 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 170 tons of waste per month. Gluck has developed a new system that would increase the efficiency of its stamping process. The new system has an annual cost of $50,000, but would reduce stamping waste by 50%, the remaining waste would be sold to a recycler for $35 per ton. What is the net savings if Gluck implements this new system?

Core reports disclose at least one indicator related to each identified material aspect in the CSR report.

The Global Reporting Initiative has developed a framework for companies to use for sustainability reporting that is used worldwide.

Gluck Metal Works stamps sheet metal into blanks that are used in a variety of consumer products. The average cost for sheet metal is $85 per ton. Gluck's waste disposal company charges $65 per ton to dispose of manufacturing waste. The stamping process currently employed by Gluck generates an average of 150 tons of waste per month. What is the net amount Gluck would save per year if stamping waste could be sold to a recycler for $33 per ton?