Sir one of the advantages of environmental costing is - "it reduces the potential for cross- subsidisation of environmentally damaging products. "
I do not understand this statement one bit. Could you perhaps explain it with an example?
Sorry for bothering you so much sir!
Ask the Tutor ACCA PM
EMA advantages
5y ago#1Cross-subsidisation is when the profits of one product 'hide' losses on another product.
When environmental costs are charged properly to the relevant products there is less chance of this happening.
Sign in to reply to this topic.