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Full Cost Accounting: A Course Module on Incorporating Environmental and Social Costs into Traditional Business Accounting Systems
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Full Cost Accounting: A Course Module on Incorporating Environmental and Social Costs into Traditional Business Accounting Systems
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Earnings is a measure of performance during a period that is concerned primarily with the extent to which asset inflows associated with cash-to-cash cycles substantially completed (or completed) during the period exceed (or are less than) asset inflows associated, directly or indirectly, with the same cycles. Both an entity's ongoing major or central activities and its incidental or peripheral transactions involve a number of overlapping cash-to-cash cycles of different lengths. At any time, a significant proportion of those cycles is normally incomplete, and prospects for their successful completion and amounts of related revenues, expenses, gains, and losses vary in degree. | Full Cost Accounting A Course Module on Incorporating Environmental and Social Costs into Traditional Business Accounting Systems Noellette Conway-Schempf Ph.D. Carnegie Mellon University Pittsburgh PA 15213 1 Overview This module describes methods for incorporating environmental information into accounting management information systems to allow financial decision makers to include environmental criteria in their decisions. The module is subdivided to permit a progression of detail concerning accounting systems and their role in encouraging the design and development marketing and use of more environmentally-conscious products services and manufacturing processes. The module is suitable for use as part of an engineering or business environmental management course at either the undergraduate or graduate level through the selection of various components of the module. Thus for example in an MBA course the early material on types of accounting systems would be unnecessary or in an engineering environmental management course more emphasis could be placed on the managerial cost accounting section than on the national accounting section. The module is subdivided as follows 1 Introduction What is accounting Relevance of accounting and capital budgeting to environmental management and engineering issues Types of accounting systems Shortcomings of accounting systems as environmental information systems Full cost accounting 2 Incorporating social and environmental costs into accounting systems National accounts Financial accounts 2 Cost accounting systems and capital budgeting 3 Valuing the environment 4 The ultimate goal -full cost pricing 5 Difficulties associated with full cost accounting 6 Additional teaching resources available Case studies Readings Appendix 1 Example short class projects and assignments Appendix 2 Case study of environmental cost accounting for scrap at an automobile manufacturing facility- Instructor s version and student version. Appendix 3 Example
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Full Cost Accounting: A Course Module on Incorporating Environmental and Social Costs into Traditional Business Accounting Systems
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