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Conventional costs and Hidden costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Conventional costs and Hidden costs

  • This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.
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  • May 25, 2022 at 11:32 am #656425
    bucky709
    Participant
    • Topics: 14
    • Replies: 14
    • ☆

    Hi

    Whats the difference between a conventional cost and a potentially hidden cost in environmental accounting?

    May 25, 2022 at 5:06 pm #656446
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51920
    • ☆☆☆☆☆

    Conventional costs are the direct costs which will be measured anyway in the normal way e.g. the costs of disposing of waste.

    Potentially hidden costs are costs that are not so easy to identify and measure e.g. loss of revenue because customers regard other companies as being more environmentally friendly and so prefer to buy from the other companies.

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