F5 Chapter 4 MCQ Questions –

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April 29, 2018 at 3:21 pm #449345
iworkforcia
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Question No 3: Which of the following environmental accounting techniques would be relevant when considering the costs of dismantling machines at the end of a project?
a. Activity Based Costing
b. Flow cost accounting
c. Input / Output analysis
d. Lifecycle costing
I chose Lifecycle costing, but the popup said the answer is Flow cost acounting.
lifecycle costing includes the cost of disposal or waste and so does flow cost accounting, where did I go wrong?
April 30, 2018 at 7:56 am #449415
John Moffat
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Lifecycle costs does include the cost of disposal along with al other costs.
However it is flow cost accounting that looks at delivery and disposal as a specific category and so is the better answer.
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