Question 1

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.

Accepted Answer

The answer of The United States Environment Protection Authority has...

Question 2

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

Accepted Answer

A)  Percentage of suppliers who have undergone screening on human rights policies 
B)  Carbon emission reduction 
C)  Revenue growth in local markets 
D)  Percentage of materials used that are recycled

Question 3

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.

Accepted Answer

A) True 
 B)False

Question 4

An example of a hidden 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)  equipment to prevent environmental damage.

Question 5

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

Accepted Answer

A)  $45 000 
B)  $40 000 
C)  $145 000 
D)  $140 000

Question 6

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

Accepted Answer

A)  i and ii 
B)  i, ii and iii 
C)  i, ii, iii and iv 
D)  All of the given answers

Question 7

Management accounting techniques that feature in environmental management accounting include:

Accepted Answer

A)  environmental performance measures. 
B)  life cycle costing. 
C)  environmental variance analysis. 
D)  environmental performance measures AND life-cycle costing.

Question 8

Which of the following is an example of human capital?

Accepted Answer

A)  Employees' competence and experiences 
B)  Employees' competence and relationships 
C)  Employees' relationships and experiences 
D)  Employees' relationships and networks

Question 9

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:

Accepted Answer

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

Question 10

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?)

Accepted Answer

A)  Future ecological and social issues are not yet known. 
B)  Many costs and benefits are external (they occur outside the organisation). 
C)  Many costs and benefits are difficult to quantify. 
D)  None of the given answers

Question 11

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

Accepted Answer

A)  GRI Framework. 
B)  IRR Framework. 
C)  ISO14031. 
D)  ISO14001.

Question 12

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

Accepted Answer

A)  Hidden costs 
B)  Societal costs 
C)  Relationship and image costs 
D)  Conventional costs

Question 13

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.

Accepted Answer

The answer of ISO14031 suggests three types of indicators on...

Question 14

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

Accepted Answer

A)  External 
B)  Preventive 
C)  Societal 
D)  Conversion

Question 15

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

Accepted Answer