Environment related costs

This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.

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July 25, 2016 at 7:09 am #328758
kimtranvn
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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
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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
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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
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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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