AKMEN Ch 17 - Hansen Mowen

8/20/2019 AKMEN Ch 17 - Hansen Mowen

1/18

1

PowerPointPowerPoint Presentation byPresentation by

Gail B. WrightGail B. WrightProfessor Emeritus of AccountingProfessor Emeritus of Accounting

Bryant UniversityBryant University

© Copyright !!" #homson $outh%Western& a part of #he

#homson Corporation. #homson& the $tar 'ogo& an(

$outh%Western are tra(emar)s use( herein un(er license.

MANAGEMENT

ACCOUNTING

8th EDITION

BY

HANSEN & MOWEN

* +,#-/UC#+,

*" E,0+-,1E,#A' C$#1A,AGE1E,#

STUDENT EDITION


2/18

2

1. Discuss the importance of measuring

environmental costs.

2. Explain how environmental costs areassigned to products & processes.

3. Describe the life-cycle cost assessment

model.

. !ompare & contrast activity- & strategic-

based environmental control.

LEARNING OBJECTIVES


3/18

3

"hy is it important to

measure environmentalcosts#

Awareness of environenta! "osts

is i#ortant $e"a%se

environenta! re%!ations &fines have in"rease'(

$% 1

fines


4/18

4

E,0+-,1E,#A' 2UA'+#3

C$# 1/E'

$oos at costs and their impact for damage

done to the environment. 'n addition todirect costs( there are costs to preventing

environmental degradation.

$% 1


5/18

5

E,0+-,1E,#A' /E#EC#+,

C$#$

)re costs to determine compliance with

appropriate environmental standards

including*+egulatory government laws

,oluntary standards '% 1//10

anagements environmental policies

$% 1

Manaeent)s environenta! #o!i"ies


6/18

6

"hat are environmental

external failure costs#

Environenta! e*terna! fai!%re

"osts are "osts of a"tivities

#erfore' after 'is"harin

"ontainants & waste into the

environent(

$% 1


7/18

7

"hat information does an

environmental cost report provide#

Environenta! "ost re#orts revea!

+, the i#a"t of environenta!

"osts on fir #rofita$i!it- & .,

re!ative ao%nts e*#en'e' in

ea"h "ateor-(

$% 1


8/18

8

!an environmental failure

costs be reduced#

Yes/ Investin ore in #revention

& 'ete"tion a"tivities wi!!

re'%"e environenta! fai!%re

"osts(

$% 1

#revention


9/18

9

E,0+-,1E,#A' C$#+,G4

/efinition

ull environmental costingassigns both private & societal

costs to products. 4rivate costs

are caused by internal processes.

$% 2


10/18

10

5-1U'A4 Ca(mium E6ample

Costs are assigned proportionately when

multiple products are produced.

$% 2

E*terna! fai!%re "ost0

1 Tota! fai!%re "ost 2 Units #ro'%"e'1 3+456555 7 .56555 1 3(45 #er %nit3(45 #er %nit


11/18

11

'+5E%C3C'E A$$E$$1E,#4

/efinition

'dentifies environmentalconse5uences of a product

through its entire life cycle &

searches for improvements.

$% 3


12/18

12

A$$E$$1E,# $#AGE$

3 formal stages'nventory analysis6ypes( 5uantities inputs needed

Environmental releases

'mpact analysisEffects of competing designs

+elative raning of effects'mprovement analysis%b7ective* to reduce environmental impacts

$% 3


13/18

13

E,0+-,1E,#A'

PE-$PEC#+0E8 ob7ectives for environmental perspectiveinimi9e use of raw or virgin materials

inimi9e use of ha9ardous materialsinimi9e energy re5uirements for production( use

of product

inimi9e release of solid( li5uid( gaseous residues

aximi9e opportunities to recycle

$%


14/18

14

)re environmental activities

non-value-added#

Be"a%se environenta! #o!!%tion

is e9%iva!ent to e"onoi"

ineffi"ien"-6 a!! fai!%re a"tivities

are non:va!%e:a''e'(

$%


15/18

15

E,0+-,1E,#A' C$# #-E,/

G-AP7

$%

E87+B+#E87+B+# *"%*!*"%*!

!osts as a percentage of sales

trend downward

over time.9


16/18

16

BA- G-AP7 5- #-E,/$

$%

E87+B+#E87+B+# *"%***"%**

Emissions trenddownward over

time.

9

%


17/18

17

7A:A-/U$ WA$#E P+E C7A-#

$%

E87+B+#E87+B+# *"%**"%*

How 'o #ie"harts 'iffer

fro other

ra#hs in the

inforation

the- #rovi'e;


18/18

18

THE ENDTHE END

CHA

AKMEN Ch 17 - Hansen Mowen

Documents

Transcript of AKMEN Ch 17 - Hansen Mowen