EMA techniques

In this lesson

1. 0:00 Environmental management accounting techniques
2. 0:07 Activity-Based Costing for environmental costs
3. 1:51 Lifecycle Costing across product stages
4. 3:26 Input-Output Analysis and waste measurement
5. 5:01 Environmental flow cost accounting explained
6. 6:38 Saltaire case study: applying EMA techniques
7. 8:43 Answer review and environmental budget control

About this lesson

EMA techniques help you identify, measure, and control environmental costs that traditional costing methods often hide in overheads—crucial knowledge for Performance Management and Strategic Business Leader papers where sustainability and stakeholder accountability are increasingly tested. The lesson covers Activity-Based Costing, which allocates environmental overheads more accurately by identifying cost drivers; Lifecycle Costing, which captures environmental costs across a product's entire life from creation through disposal; Input-Output Analysis, which tracks material flows to reveal waste and environmental impact; and Environmental Flow Cost Accounting, which follows costs through an organisation to identify where reductions can be made. You'll explore the benefits of each technique—from more realistic product pricing to better control and motivation—as well as their practical limitations, such as data availability, measurement challenges, and the risk of inflexible assumptions. The lesson concludes with a worked example involving a chemical manufacturer planning a new product with significant environmental liabilities. You'll see how to structure an answer that combines theoretical understanding with practical application, including how EMA supports corporate sustainability reporting, contingent liability planning, and more focused environmental budgeting and control.

Duration: 10m