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Environment related costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Environment related costs

Viewing 4 posts - 1 through 4 (of 4 total)
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  • July 25, 2016 at 7:09 am #328758
    kimtranvn
    Member
    • Topics: 14
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    • ☆

    Dear Sir,

    In Question 17 (June 2015 exam), what are differences between environment related costs and environment driven costs?

    Thanks,
    KT

    July 25, 2016 at 7:25 am #328768
    John Moffat
    Keymaster
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    Environmentally related are costs caused by the company (such as waste).
    Environmentally driven are costs caused by the environment (such as the cost of heating because the weather is cold).

    July 25, 2016 at 7:33 am #328779
    kimtranvn
    Member
    • Topics: 14
    • Replies: 13
    • ☆

    Thanks John for very fast response. And in the answer for this question, there are 2 terms, joint cost centre and OH. What does joint cost centre mean in this case and why is environment driven costs allocated to general OH but not joint cost centre?
    Thanks,
    KT

    July 25, 2016 at 11:27 am #328854
    John Moffat
    Keymaster
    • Topics: 57
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    • ☆☆☆☆☆

    Environment related costs can be collected together in one cost centre (joint cost centre) – so (for example) all costs relating to waste.

    Environment driven are parts of general overheads (e.g. electricity)

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