Exam 17: Sustainability and Management Accounting

The United States Environment Protection Authority has defined five tiers of environmental costs. Name these five tiers and provide a brief description with an example for each tier.

Which of the following is a performance indicator for social performance?

Management accountants are rapidly moving towards a system of not only identifying cost drivers, but also identifying new costs and performance measures in supply chain management to produce sustainability reports.

An example of a hidden environmental cost is:

From the following list, calculate the total environmental internal failure costs.

The following is a list of the five tiers of environmental costs. Which of them are described as 'private costs'? i. Conventional ii. Hidden iii. Contingent iv. Relationship and image v. Societal

Management accounting techniques that feature in environmental management accounting include:

Which of the following is an example of human capital?

A small to medium-sized organisation wanting to manage their environmental performance with a focus on improving their environmental management systems would be most likely to use:

Which of the following reasons, explaining the difficulty of reporting, is unique to environmental and social impacts? (In other words, which of the explanations is an issue relating to environmental and social costs, but does not relate to other costing issues faced by firms?)

Management requiring guidance on how to identify environmental performance measures would research:

Which of the following tiers of environmental costs would not be classified as a 'private cost'?

ISO14031 suggests three types of indicators on how to identify performance measures. Identify these three indicators and discuss how they provide guidance on how to identify environmental performance measures. Provide examples of each indicator to illustrate the performance measured.

Which of the following costs is included in the five tiers of environmental costs?

Despite the costs involved, measuring environmental and social impacts (sustainability) can provide useful information to assist a firm to achieve a competitive advantage.

From the following, calculate the amount of relationship and image environmental costs.