Environmental accounting — OpenTuition Forums

draielles5y ago

Hello Sir It'd help a lot if you could clarify this phrase from bpp study text ''For example, if an environmental activity is prevention of air pollution, costs will include the costs of equipment, the cost of labour time, and so on. These costs may be absorbed into product costs using the volume of waste emissions as a cost driver. Each product will then be charged a share of the costs according to the volume of waste emitted in their manufacture. '' I really don't understand how costs of labor time and equipment are considered to be environmental costs here?? Pleaseeeeeeeee explain. :(

John MoffatTutor5y ago#1

What they are meaning is that in order to prevent air pollution (which is an environmental activity) they are having to buy special equipment and pay for extra workers. These are not directly costs of actually producing anything, but are costs of protecting the environment.

draielles5y ago#2

Thank you so so so much! I wonder how I would be able to do PM without your help I owe you a big one!!

John MoffatTutor5y ago#3

You are welcome :-)

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