EMA advantages

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September 12, 2020 at 1:16 pm #585309
Noah098
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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!
September 12, 2020 at 3:47 pm #585349
John Moffat
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Cross-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.
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