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In the past two PM exams (December 18 & March 19), I’ve come across an Environmental costing (I think) question in Section A, that I have been unable to solve.
The question gives an input amount of materials and the resultant output, a cost for any waste from the production process and requires that the Environmental costs (or maybe its wastage cost) be calculated.
Does anybody know the question I’m referring to here?? and how to solve it?
This sounds like Input/output analysis environmental cost technique.
According to the BPP text this analysis measures the Input and output quantities in costs. Any difference between the input and output amounts is residual or waste which is the environmental cost.Input – Output = Residual/waste
The notes in the BPP text is really helpful.
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