Accounting for environmental costs
You'll learn how to account for environmental costs within your organisation's internal decision-making processes. This lesson covers four key methods: input-output flow analysis, flow cost accounting, activity-based costing for environmental costs, and lifecycle costing.
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In this lesson
- 0:00 Environmental management accounting overview
- 1:06 Four approaches to accounting for environmental costs
- 2:00 Flow cost accounting and material categorisation
- 2:34 Activity-based costing for environmental costs
- 3:13 Lifecycle costing across product stages
- 3:56 The three pillars of sustainability
- 5:05 Challenges in environmental cost quantification
About this lesson
You'll discover how to track material flows, identify waste and inefficiencies, allocate environmental costs accurately to products and services, and consider the full lifecycle impact of your decisions. Understanding these techniques is essential for the Performance Management paper, where environmental management accounting helps you make smarter, more sustainable business decisions whilst controlling costs.
Duration: 6m
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