Question 1

An example of a relationship and image environmental cost is:

Accepted Answer

A)  monitoring costs. 
B)  provisions for a potential oil-spill cleanup. 
C)  when a firm produces a product that is difficult to dispose of safely. 
D)  lost business because of adverse television publicity. 
A)  monitoring costs. 
B)  provisions for a potential oil-spill cleanup. 
C)  when a firm produces a product that is difficult to dispose of safely. 
D)  lost business because of adverse television publicity. D

Question 2

Management accounting has always included economic, environmental and social impacts, as many costs are internal to the organisation.

Accepted Answer

A) True 
 B)False  False

Question 3

The standard GRI framework compares their sustainability performance globally within industry sectors. This is an example of:

Accepted Answer

A)  comparability. 
B)  offsetting. 
C)  benchmarking. 
D)  analysing. 
A)  comparability. 
B)  offsetting. 
C)  benchmarking. 
D)  analysing. C

Question 4

Why is the inclusion of 'environmental performance' likely to become more common in a firm's balanced scorecard?

Accepted Answer

A)  The balanced scorecard must include all stakeholder interests to be complete. 
B)  It is likely that environmental sustainability is one of a firm's strategic priorities. 
C)  The balanced scorecard acknowledges that it is no longer adequate to focus only on the major stakeholder (the firm's owner(s)). 
D)  The balanced scorecard acknowledges that numerous stakeholders are important for business success. 
A)  The balanced scorecard must include all stakeholder interests to be complete. 
B)  It is likely that environmental sustainability is one of a firm's strategic priorities. 
C)  The balanced scorecard acknowledges that it is no longer adequate to focus only on the major stakeholder (the firm's owner(s)). 
D)  The balanced scorecard acknowledges that numerous stakeholders are important for business success.

Question 5

Eco-intensity measures are measures of output to input.

Accepted Answer

A) True 
 B)False

Question 6

The major purpose of environmental management accounting is to enable managers to:

Accepted Answer

A)  improve profitability by reducing environmental costs. 
B)  be informed about the environmental impacts of the organisation's activities. 
C)  establish both financial and non-financial measures of performance. 
D)  improve environmental performance by monitoring management's efficiency in relationship to environmental targets. 
A)  improve profitability by reducing environmental costs. 
B)  be informed about the environmental impacts of the organisation's activities. 
C)  establish both financial and non-financial measures of performance. 
D)  improve environmental performance by monitoring management's efficiency in relationship to environmental targets.

Question 7

Because environmental issues span the extended value chain of the firm, environmental management accounting uses supply chain management by:

Accepted Answer

A)  identifying and using environmentally sensitive suppliers. 
B)  assisting customers with environmentally sensitive disposal of the firm's goods. 
C)  considering cost savings by using customer profitability analysis. 
D)  identifying and using environmentally sensitive suppliers AND assisting customers with environmentally sensitive disposal of the firm's goods. 
A)  identifying and using environmentally sensitive suppliers. 
B)  assisting customers with environmentally sensitive disposal of the firm's goods. 
C)  considering cost savings by using customer profitability analysis. 
D)  identifying and using environmentally sensitive suppliers AND assisting customers with environmentally sensitive disposal of the firm's goods.

Question 8

An organisation wanting to manage their environmental performance with a focus on Life Cycle Assessment would be most likely to use:

Accepted Answer

A)  ISO 14005. 
B)  ISO 14031. 
C)  ISO 14040. 
D)  ISO 14064. 
A)  ISO 14005. 
B)  ISO 14031. 
C)  ISO 14040. 
D)  ISO 14064.

Question 9

An example of a societal environmental cost is:

Accepted Answer

A)  monitoring costs. 
B)  provisions for potential oil-spill clean up. 
C)  when a firm produces a product that is difficult to dispose of safely. 
D)  buying equipment to prevent environmental damage. 
A)  monitoring costs. 
B)  provisions for potential oil-spill clean up. 
C)  when a firm produces a product that is difficult to dispose of safely. 
D)  buying equipment to prevent environmental damage.

Question 10

Under ISO14031, which of the following is a management performance indicator?

Accepted Answer

A)  Percentage of raw materials that are from recycled sources 
B)  Air quality surrounding a company's main factories 
C)  The dollar amount spent on developing staff environmental awareness training programs 
D)  Percentage of suppliers checked for corruption charges 
A)  Percentage of raw materials that are from recycled sources 
B)  Air quality surrounding a company's main factories 
C)  The dollar amount spent on developing staff environmental awareness training programs 
D)  Percentage of suppliers checked for corruption charges

Question 11

Just as stakeholders have an interest in a company's performance, this same group of stakeholders also have an influence over an organisation's environmental and social practices.

Accepted Answer

A) True 
 B)False

Question 12

Management performance indicators such as the number of cases of non-compliance with regulations, measure the efforts of management to improve the environmental performance of the organisation.

Accepted Answer

A) True 
 B)False

Question 13

Unfortunately, because the costs of climate change cannot be classified easily into the current five tiers of environmental costs many firms may find it difficult to reduce these costs.

Accepted Answer

A) True 
 B)False

Question 14

An organisation that is committed to sustainability will produce a sustainability report using relevant data. Plus they will also have a:

Accepted Answer

A)  reporting concept. 
B)  reporting timeframe. 
C)  reporting period. 
D)  reporting cycle. 
A)  reporting concept. 
B)  reporting timeframe. 
C)  reporting period. 
D)  reporting cycle.

Question 15

The need to conform to legal regulations is the only reason firms are currently adopting a sustainability approach.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be classified as Tier 2 environmental costs at Cormack Manufacturing?

Accepted Answer

A)  Materials, packaging, direct labour 
B)  Packaging, direct labour, depreciation 
C)  Direct labour, waste, light and power 
D)  depreciation, direct labour, waste 
A)  Materials, packaging, direct labour 
B)  Packaging, direct labour, depreciation 
C)  Direct labour, waste, light and power 
D)  depreciation, direct labour, waste

Question 17

Reports to stakeholders of a firm's performance on environmental and social issues (sustainability) are called:

Accepted Answer

A)  social audits. 
B)  environmental reports. 
C)  triple bottom line reports. 
D)  All of the given answers. 
A)  social audits. 
B)  environmental reports. 
C)  triple bottom line reports. 
D)  All of the given answers.

Question 18

From the following list of costs, calculate the amount of conventional environmental costs.

Accepted Answer

A)  $350 000 
B)  $355 000 
C)  $110 000 
D)  $550 000 
A)  $350 000 
B)  $355 000 
C)  $110 000 
D)  $550 000

Question 19

Explain how organisations reflect sustainability as a strategic priority in their balanced scorecard. Provide an example to support your explanation.

Accepted Answer

Answer : The balanced scorecard (BSC) is

Question 20

Which of the following statements is correct?

Accepted Answer

A)  Eco-intensity measures measure the relationship of output to input. 
B)  Eco-intensity measures measure the relationship of input to output. 
C)  Eco-efficiency is another term for eco-intensity. 
D)  Eco-efficiency measures are measures of productivity. 
A)  Eco-intensity measures measure the relationship of output to input. 
B)  Eco-intensity measures measure the relationship of input to output. 
C)  Eco-efficiency is another term for eco-intensity. 
D)  Eco-efficiency measures are measures of productivity.

Exam 17: Sustainability and Management Accounting

An example of a relationship and image environmental cost is:

Management accounting has always included economic, environmental and social impacts, as many costs are internal to the organisation.

The standard GRI framework compares their sustainability performance globally within industry sectors. This is an example of:

Why is the inclusion of 'environmental performance' likely to become more common in a firm's balanced scorecard?

Eco-intensity measures are measures of output to input.

The major purpose of environmental management accounting is to enable managers to:

Because environmental issues span the extended value chain of the firm, environmental management accounting uses supply chain management by:

An organisation wanting to manage their environmental performance with a focus on Life Cycle Assessment would be most likely to use:

An example of a societal environmental cost is:

Under ISO14031, which of the following is a management performance indicator?

Just as stakeholders have an interest in a company's performance, this same group of stakeholders also have an influence over an organisation's environmental and social practices.

Management performance indicators such as the number of cases of non-compliance with regulations, measure the efforts of management to improve the environmental performance of the organisation.

Unfortunately, because the costs of climate change cannot be classified easily into the current five tiers of environmental costs many firms may find it difficult to reduce these costs.

An organisation that is committed to sustainability will produce a sustainability report using relevant data. Plus they will also have a:

The need to conform to legal regulations is the only reason firms are currently adopting a sustainability approach.

Which of the following would be classified as Tier 2 environmental costs at Cormack Manufacturing?

Reports to stakeholders of a firm's performance on environmental and social issues (sustainability) are called:

From the following list of costs, calculate the amount of conventional environmental costs.

Explain how organisations reflect sustainability as a strategic priority in their balanced scorecard. Provide an example to support your explanation.

Which of the following statements is correct?

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

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