The accountant and environmental costs
In this lesson, you'll learn how management accountants help organisations manage environmental costs and integrate sustainability into decision-making.
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In this lesson
- 0:00 The accountant's role in environmental costs
- 1:04 Understanding the four Rs of sustainability
- 2:09 Analysing costs using flow cost accounting
- 3:37 Calculating environmental costs step by step
- 4:52 Working out waste and disposal expenses
About this lesson
You'll explore the four Rs framework—reducing, removing, restoring, and reimagining—which guides sustainable business practice, and discover how flow cost accounting captures environmental expenses across material inputs, processes, and disposal. Through worked examples, you'll see how to calculate the true environmental cost of production by analysing the difference between inputs and outputs, including both wasted materials and disposal costs. This knowledge is essential for Performance Management and strategic decision-making, helping you understand how environmental responsibility connects to financial performance.
Duration: 6m
Transcript
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