Question 1

If BHP Billiton is concerned about the costs of monitoring existing levels of carbon emissions,what type of environmental cost are they concerned with?

Accepted Answer

Appraisal costs are related to the costs associated with conducting evaluations or reviews to ensure compliance with environmental regulations. Monitoring carbon emissions falls under the category of appraisal costs. Prevention costs would be related to implementing measures to reduce emissions, while internal and external failure costs are associated with the costs of addressing environmental damage or pollution after it has occurred.

Question 2

Which of the following elements does not relate to the environmental aspect of triple bottom line reporting?

Accepted Answer

Exports do not relate to the environmental aspect of triple bottom line reporting as they primarily refer to the economic aspect of the report. GHG emissions, water use, and spills onto waterways are all environmental factors that can impact a company's sustainability and ecological impact.

Question 3

Which of the following elements relates to the social aspect of triple bottom line reporting?

Accepted Answer

Donations to community are a measure of a company's social responsibility and involvement in its community, which is a key aspect of the social component of triple bottom line reporting. GHG emissions and exports are related to the environmental component, while revenues are related to the financial component.

Question 4

Which of the following elements relate to the economic aspect of triple bottom line reporting?

Accepted Answer

Exports relate to the economic aspect of triple bottom line reporting as they generate revenue and contribute to a company's financial health. Training programs and safety programs may relate to social and environmental aspects, respectively, while donations to the community may encompass both social and environmental aspects.

Question 5

Which of the following elements does not relate to the social aspect of triple bottom line reporting?

Accepted Answer

Revenues relate to the economic aspect of triple bottom line reporting, specifically to profitability and financial performance. The social aspect focuses on the impact of the company's operations on people, including employees, customers, and the broader community. Labour standards, health and safety, and donations to the community are all social factors that can be evaluated as part of triple bottom line reporting.

Question 6

If BHP Billiton is concerned about the cost of implementing technologies that minimise GHG emissions in the future,what type of environmental cost are they concerned with?

Accepted Answer

Prevention costs refer to the costs incurred to prevent or reduce environmental harm, including costs associated with adopting new technologies or processes that minimise GHG emissions. Therefore, the concern of BHP Billiton about the cost of implementing technologies that reduce GHG emissions in the future is an example of prevention costs.

Question 7

If BHP Billiton is concerned about the cost of fines for excessive GHG emissions,what type of environmental cost are they concerned with?

Accepted Answer

External failure costs are costs associated with environmental damage caused by a company's activities, including fines for excessive GHG emissions. BHP Billiton would be concerned with these costs as they can result in significant financial losses and damage to the company's reputation.

Question 8

Companies focusing on sustainability value chains tend to consider which of the following concerns?

Accepted Answer

Companies focusing on sustainability value chains tend to consider environmental and social concerns. They aim to reduce the negative impact on the environment and ensure social responsibility by promoting fair labor practices, community involvement, and ethical sourcing.

Question 9

If BHP Billiton is concerned about the medical costs for looking after employees with health concerns,they are concerned with:

Accepted Answer

Internal failure costs are associated with defects found before the product/service reaches the customer, including costs related to the health and well-being of employees, which can affect productivity and operational efficiency.

Question 10

Which of the following stakeholders of an organisation are least likely to be directly impacted by its external costs?

Accepted Answer

Managers are less likely to be directly impacted by external costs as they are not typically affected by the negative consequences of a company's actions in the same way that the environment, society, and suppliers may be.

Question 11

Which of the following is an example of an appraisal cost?

Accepted Answer

Costs to monitor existing environmental systems in the organisation are an example of an appraisal cost, as they are expenses incurred to evaluate and measure the effectiveness of environmental management systems already in place.

Question 12

Which of the following is an example of an external failure cost?

Accepted Answer

Fines for breach of environmental standards are an example of external failure costs, as they are incurred due to failure to meet external quality standards or regulations.

Note: 
B is not correct because employee health costs are internal failure costs, as they are incurred due to defects in the organisation's processes or products. 
C and D are not correct because they are prevention costs, which are incurred to prevent defects or failures from occurring in the first place.

Question 13

Which of the following is an example of a prevention cost?

Accepted Answer

Prevention costs are costs incurred to prevent defects from occurring. Implementation costs of new technology that minimises the risk of environmental damage is a form of prevention cost.

Option A, fines for breach of environmental standards, is a type of appraisal cost as it is concerned with inspecting, testing and auditing.

Option B, employee health costs, is a type of internal failure cost as it arises due to the deficiency in the product or service.

Option D, costs to monitor existing environmental systems in the organisation, is also a type of appraisal cost as it is concerned with inspecting, testing and auditing of existing environmental systems.

Question 14

Which of the following elements does not relate to the economic aspect of triple bottom line reporting?

Accepted Answer

Donations to community are not directly related to the economic aspect of triple bottom line reporting, as they fall under the social aspect. Expenses, profit, and exports are all financial factors that relate to the economic aspect of reporting.

Question 15

Which of the following statements is true?

Accepted Answer

Sustainability activities aim to incorporate social and environmental factors into the decision-making process. External costs, which are costs incurred by society and the environment due to a company's actions, are a key aspect of sustainability. Option A is incorrect since external costs are not direct costs but rather indirect costs. Option B is incorrect since sustainability activities can also have short-term financial benefits. Option C is incorrect since external costs are important to consider in all organisations, irrespective of their size, operations or geographical spread.

Question 16

Sustainability value chains attempt to show how:

Accepted Answer

Sustainability value chains focus on how integrating sustainability into business processes can lead to improved business outcomes, such as enhanced reputation, customer loyalty, and operational efficiencies.

Question 17

Which of the following statements is true?

Accepted Answer

Prevention and appraisal costs are usually more desirable than internal failure and external failure costs because they involve preventing defects or identifying them early in the process, which can ultimately save costs and improve product quality. It is not true that prevention costs are less desirable than external failure costs, as preventing defects is generally preferable to dealing with failures after they have occurred. Appraisal costs may not always be significant depending on the industry and company practices. Direct materials costs may or may not be environmental costs, depending on the nature of the materials and how they are used.

Question 18

Which of the following elements relates to the environmental aspect of triple bottom line reporting?

Accepted Answer

GHG emissions are directly related to the environmental impact of a business and therefore relate to the environmental aspect of triple bottom line reporting. Safety programs, donations to community, and exports may relate to social or economic aspects of triple bottom line reporting, but not specifically to the environmental aspect.

Question 19

What are the four environmental cost types in organisations?

Accepted Answer

The four environmental cost types in organisations are prevention costs (costs incurred to prevent environmental harm), appraisal costs (costs of assessing environmental impact), internal failure costs (costs of correcting environmental problems before they reach the public), and external failure costs (costs of correction and remediation after environmental harm has occurred). Options A and B are not relevant to environmental costs, and option D is incorrect as it includes "variable" as a cost type, which is not specific to the environment.

Question 20

Which of the following is an example of an internal failure cost?

Accepted Answer

Internal failure costs are costs that result from defects or failures within the organization's processes or products that occur before they are delivered to the customers. Employee health costs are an example of an internal failure cost as they arise due to the failure of the organization's processes to ensure the safety and well-being of its employees.

Quiz 15: Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

If BHP Billiton is concerned about the costs of monitoring existing levels of carbon emissions,what type of environmental cost are they concerned with?

Which of the following elements does not relate to the environmental aspect of triple bottom line reporting?

Which of the following elements relates to the social aspect of triple bottom line reporting?

Which of the following elements relate to the economic aspect of triple bottom line reporting?

Which of the following elements does not relate to the social aspect of triple bottom line reporting?

If BHP Billiton is concerned about the cost of implementing technologies that minimise GHG emissions in the future,what type of environmental cost are they concerned with?

If BHP Billiton is concerned about the cost of fines for excessive GHG emissions,what type of environmental cost are they concerned with?

Companies focusing on sustainability value chains tend to consider which of the following concerns?

If BHP Billiton is concerned about the medical costs for looking after employees with health concerns,they are concerned with:

Which of the following stakeholders of an organisation are least likely to be directly impacted by its external costs?

Which of the following is an example of an appraisal cost?

Which of the following is an example of an external failure cost?

Which of the following is an example of a prevention cost?

Which of the following elements does not relate to the economic aspect of triple bottom line reporting?

Which of the following statements is true?

Sustainability value chains attempt to show how:

Which of the following statements is true?

Which of the following elements relates to the environmental aspect of triple bottom line reporting?

What are the four environmental cost types in organisations?

Which of the following is an example of an internal failure cost?