Question 1

Traditional profits measures can measure sustainability;the information just has to be rearranged.

Accepted Answer

A) True 
 B)False

Question 2

All of these statements are correct except:

Accepted Answer

A) many businesses profess a commitment to sustainable business practices. 
B) eco-justice is an important concept of sustainability. 
C) there is pressure from society for businesses to address social and environmental concerns. 
D) all businesses currently accept that sustainability is their primary goal. 
A) many businesses profess a commitment to sustainable business practices. 
B) eco-justice is an important concept of sustainability. 
C) there is pressure from society for businesses to address social and environmental concerns. 
D) all businesses currently accept that sustainability is their primary goal.

Question 3

The statements concerning life-cycle analysis (LCA)are true EXCEPT for:

Accepted Answer

A) The definition of life-cycle always begins with the extraction of the raw materials and ends with the disposal of the product. 
B) The broadest view of LCA recognises some of social or environmental impacts that are difficult to cost. 
C) Life-cycle analysis may include costs incurred by the customer and the supplier. 
D) No statement is incorrect;i.e.all are correct statements. 
A) The definition of life-cycle always begins with the extraction of the raw materials and ends with the disposal of the product. 
B) The broadest view of LCA recognises some of social or environmental impacts that are difficult to cost. 
C) Life-cycle analysis may include costs incurred by the customer and the supplier. 
D) No statement is incorrect;i.e.all are correct statements.

Question 4

A 'cap and trade' approach to greenhouse gas control is a 'stick' rather than a 'carrot' approach.

Accepted Answer

A) True 
 B)False

Question 5

Pursuing sustainability almost always leads to a fall in the economic performance of an organisation.

Accepted Answer

A) True 
 B)False

Question 6

The following is NOT an indicator of social impact under the Global Reporting Initiative:

Accepted Answer

A) liquidity 
B) occupational health and safety 
C) labour/management relations 
D) None;i.e.all are indicators of socially responsible reporting. 
A) liquidity 
B) occupational health and safety 
C) labour/management relations 
D) None;i.e.all are indicators of socially responsible reporting.

Question 7

Which of these management accounting tools used to monitor an organisation's social and environmental efforts,is NOT a traditional tool?

Accepted Answer

A) Scenario Modelling 
B) The Balanced Scorecard 
C) Activity-based Costing 
D) None of the above;i.e.all are adaptions of traditional tools. 
A) Scenario Modelling 
B) The Balanced Scorecard 
C) Activity-based Costing 
D) None of the above;i.e.all are adaptions of traditional tools.

Question 8

Why might a business undertake a sustainable approach within its organisation?

Accepted Answer

A) Increase its market share 
B) Behave ethically 
C) Improve relationships with suppliers 
D) All of the above. 
A) Increase its market share 
B) Behave ethically 
C) Improve relationships with suppliers 
D) All of the above.

Question 9

Environmental management accounting provides only non-financial measures of environmental-related performance.

Accepted Answer

A) True 
 B)False

Question 10

What is the externalised cost of electricity generation referred to as?

Accepted Answer

A) The cost of constructing the plant 
B) The cost of buying coal 
C) The cost of purchasing water to cool the plant 
D) None of the above are externalised costs. 
A) The cost of constructing the plant 
B) The cost of buying coal 
C) The cost of purchasing water to cool the plant 
D) None of the above are externalised costs.

Question 11

Which of these product labels does not indicate socially and environmentally responsible production conditions?

Accepted Answer

A) A 'made in Canada' label 
B) A fair trade label 
C) A rainforest alliance for coffee beans label 
D) None of the above;i.e.all are labels indicating socially and environmentally responsible production conditions. 
A) A 'made in Canada' label 
B) A fair trade label 
C) A rainforest alliance for coffee beans label 
D) None of the above;i.e.all are labels indicating socially and environmentally responsible production conditions.

Question 12

The business case for sustainability rests mostly on avoiding government penalties for poor environmental performance.

Accepted Answer

A) True 
 B)False

Question 13

The Australian index used to rank companies on their sustainability is the:

Accepted Answer

A) Australian Corporate Sustainability Index. 
B) ASX Sustainability Index. 
C) Corporate Governance Social and Environmental Index. 
D) Australian SAM Sustainability Index. 
A) Australian Corporate Sustainability Index. 
B) ASX Sustainability Index. 
C) Corporate Governance Social and Environmental Index. 
D) Australian SAM Sustainability Index.

Question 14

The __________________________is an independent institution which develops and disseminates sustainable reporting guidelines globally.

Accepted Answer

A) Global Reporting Initiative (GRI) 
B) World Bank 
C) Department of the Environment 
D) All of the above. 
A) Global Reporting Initiative (GRI) 
B) World Bank 
C) Department of the Environment 
D) All of the above.

Question 15

As the reporting required from businesses under an emissions trading scheme will be the responsibility of financial accountants,the work of management accountants will not be affected.

Accepted Answer

A) True 
 B)False

Question 16

'Green' products may achieve a premium in the market place.

Accepted Answer

A) True 
 B)False

Question 17

Ways in which environmental performance can impact on an organisation's cash flow are: by affecting revenue (R);by affecting access to markets (M);by affecting costs (C);through climate change policies (CC).Using the letter(s)in brackets,state the main way the item in the following list would affect cash flow.
 $$\begin{array} { | l | l | } 
\hline  { \text { Items } } & \text { RMMCKCC } \
\hline \text { 1. More efficient use of water. } & \
\hline \text { 2. A carbon trading scheme. } & \
\hline \text { 3. Recycling and reusing raw materials. } & \
\hline \text { 4. An ETS. } & \
\hline \text { 5. Launch of a 'green' version of a product. } & \
\hline \text { 6. Solar panels to feed excess electricity into the grid. } & \
\hline \text { 7. Environmental impact assessments. } & \
\hline \text { B. Introdurtion of a Grbon credit tading scheme. } & \
\hline
\end{array}$$ 
1.More efficient use of water.
2.A carbon trading scheme.
3.Recycling and reusing raw materials.
4.An ETS.
5.Launch of a 'green' version of a product.
6.Solar panels to feed excess electricity into the grid.
7.Environmental impact assessments.
8.Introduction of a carbon credit trading scheme.

Accepted Answer

1.C
2.CC
3

Question 18

Specifically identifying in separate accounts the costs associated with aspects of environmental performance creates the information for managers to reduce those costs.

Accepted Answer

A) True 
 B)False

Question 19

The description in the next sentence relates to which of the Global Reporting Initiative's principles on report content? 'Information in a report should cover topics and indicators that reflect the organisation's significant economic environmental and social impacts,or that would substantively influence the assessments and decisions of stakeholders.'

Accepted Answer

A) Sustainability context 
B) Completeness 
C) Stakeholder inclusiveness 
D) Materiality 
A) Sustainability context 
B) Completeness 
C) Stakeholder inclusiveness 
D) Materiality

Question 20

Briefly explain what is meant by 'environmental management accounting' (EMA).
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

EMA provides financial and non-financial

Traditional profits measures can measure sustainability;the information just has to be rearranged.

All of these statements are correct except:

The statements concerning life-cycle analysis (LCA)are true EXCEPT for:

A 'cap and trade' approach to greenhouse gas control is a 'stick' rather than a 'carrot' approach.

Pursuing sustainability almost always leads to a fall in the economic performance of an organisation.

The following is NOT an indicator of social impact under the Global Reporting Initiative:

Which of these management accounting tools used to monitor an organisation's social and environmental efforts,is NOT a traditional tool?

Why might a business undertake a sustainable approach within its organisation?

Environmental management accounting provides only non-financial measures of environmental-related performance.

What is the externalised cost of electricity generation referred to as?

Which of these product labels does not indicate socially and environmentally responsible production conditions?

The business case for sustainability rests mostly on avoiding government penalties for poor environmental performance.

The Australian index used to rank companies on their sustainability is the:

The __________________________is an independent institution which develops and disseminates sustainable reporting guidelines globally.

As the reporting required from businesses under an emissions trading scheme will be the responsibility of financial accountants,the work of management accountants will not be affected.

'Green' products may achieve a premium in the market place.

Specifically identifying in separate accounts the costs associated with aspects of environmental performance creates the information for managers to reduce those costs.

Briefly explain what is meant by 'environmental management accounting' (EMA). _ _

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Filters

Exam 21: Measuring and Reporting Sustainability

Traditional profits measures can measure sustainability;the information just has to be rearranged.

All of these statements are correct except:

The statements concerning life-cycle analysis (LCA)are true EXCEPT for:

A 'cap and trade' approach to greenhouse gas control is a 'stick' rather than a 'carrot' approach.

Pursuing sustainability almost always leads to a fall in the economic performance of an organisation.

The following is NOT an indicator of social impact under the Global Reporting Initiative:

Which of these management accounting tools used to monitor an organisation's social and environmental efforts,is NOT a traditional tool?

Why might a business undertake a sustainable approach within its organisation?

Environmental management accounting provides only non-financial measures of environmental-related performance.

What is the externalised cost of electricity generation referred to as?

Which of these product labels does not indicate socially and environmentally responsible production conditions?

The business case for sustainability rests mostly on avoiding government penalties for poor environmental performance.

The Australian index used to rank companies on their sustainability is the:

The __________________________is an independent institution which develops and disseminates sustainable reporting guidelines globally.

As the reporting required from businesses under an emissions trading scheme will be the responsibility of financial accountants,the work of management accountants will not be affected.

'Green' products may achieve a premium in the market place.

Specifically identifying in separate accounts the costs associated with aspects of environmental performance creates the information for managers to reduce those costs.

Briefly explain what is meant by 'environmental management accounting' (EMA). _____________________________________________________________________________________________ _____________________________________________________________________________________________

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Filters

Briefly explain what is meant by 'environmental management accounting' (EMA). _ _