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PM Chapter 4 Questions Environmental Management Accounting

VIVA Subject Guide
 

28 Comments

  1. hhys
    Hello Sir,
    Do we get calculation questions for this chapter in the exam or only theory questions??
  2. John MoffatTutor
    Just theory questions
  3. hhys
    okay Sir thank you
  4. Hermela
    hello is the use of environmental accounting for internal users?? i thought it is for also externals.
  5. John MoffatTutor
    It is only the company internally that can measure the costs involved.
  6. KEVIN
    Sir, but we can also publish external report using Internal Information on improving our Environmental issues for the boost of sales & marketing which might lead to attractive customer awareness & charging a premium price, right? This question no 3 kinda contradicts the concept I guess! ??
  7. John MoffatTutor
    The company might produce extracts from it, but they are very unlikely to publish the entire report which is prepared for management.
  8. alie2018
    Thanks for this one but I wonder why the correct answer is Flow Cost Accounting.
  9. Emma
    I wonder that too...
  10. hajar
    its because one of the categories in flow cost accounting is "delivery and DISPOSAL", therefore it does take into account the dismantling of machines at the end of the project since thats considered a disposal.
  11. Maddie
    Thank you!
  12. Noman
    me too
  13. Abhishek
    Sir could you please explain why Q3 is flow cost and not life cycle. I'm not able to find any answers in the comments
  14. John MoffatTutor
    To be honest this is a poor question as it stands (and BPP no longer include it in their revision kit), and I will have it changed.

    However, although life-cycle costing will attempt to include the costs of dismantling, it is flow-cost accounting that will specifically consider it.
  15. Abhishek
    okay thank you :)
  16. John MoffatTutor
    You are welcome :-)
  17. op1991
    Sir in BPP Revision kit the same MCQ answered is Lifecycle costing and not Flow cost accounting. Reference (Q1:1.8).
  18. John MoffatTutor
    See Shirley's answer below :-)
  19. op1991
    Got it :)
  20. John MoffatTutor
    Great :-)
  21. YantiSupporter
    Hi Moffat,

    I can only see the answer below and there is no explanation of why the flow cost accounting technique is the relevant method. yet, the life cycle costing is also taking cost of disposal of waste into account when calculating the environmental cost.

    Moffat can you please provide some explanation about the difference between the lifecycle costing and flow cost accounting ?
  22. pejz
    i would have to agree that the answer for number 3 should be life cycle costing
  23. John MoffatTutor
    No - the answer is flow cost accounting.
    See Shirley's explanation below.
  24. Yateendra
    May u plz explain why it is "Flow cost" and not "Life Cycle" tks
  25. John MoffatTutor
    I don't know which of the questions you are asking about.
  26. shirley
    This is just my understanding. When I look back to the textbook, it described the main purpose of flow cost is to reduce the negative production portion and increase positive product portion. While the life-cycle took all the cost as a whole to consider when often in the preliminary project stage. So given the question to compute dismantle machine only at the end of project, the organization is more likely to apply the flow cost methods. Hope this helps!
  27. poezarphyu
    Please explain the answer for question (3).
    My answer is Lif cycle costing.So, i don't quite understand why the correct answer is flow cost accounting.
  28. Khuram
    In my opinion, answer to the question "which accounting technique is relevant when considering cist of dismantling the machines at the end of project" is life cycle costing whereas given answer is flow cost accounting. Kindly explain.

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