Question 1

Despite the costs involved, measuring environmental and social impacts (sustainability) can provide useful information to assist a firm to achieve a competitive advantage.

Accepted Answer

Measuring and addressing sustainability can lead to improved efficiency, cost savings, enhanced reputation, and access to new markets, which can all contribute to a competitive advantage for the firm.

Question 2

Unfortunately, because the costs of climate change cannot be classified easily into the current five tiers of environmental costs many firms may find it difficult to reduce these costs.

Accepted Answer

The answer of Unfortunately, because the costs of climate change...

Question 3

The International Integrated Reporting (IRR) Framework explains how organisations create value over time. Identify and detail the six different kinds of capital that are defined in the IRR framework.

Accepted Answer

The answer of The International Integrated Reporting (IRR) Framework explains...

Question 4

Eco-intensity measures are measures of output to input.

Accepted Answer

Eco-intensity measures are measures of environmental impact per unit of output, focusing on the input to impact ratio rather than output to input.

Question 5

Just as stakeholders have an interest in a company's performance, this same group of stakeholders also have an influence over an organisation's environmental and social practices.

Accepted Answer

Stakeholders can use their influence to push companies to adopt environmentally and socially responsible practices. This includes shareholders, customers, employees, suppliers, as well as members of the community and other interest groups.

Question 6

Explain how organisations reflect sustainability as a strategic priority in their balanced scorecard. Provide an example to support your explanation.

Accepted Answer

The answer of Explain how organisations reflect sustainability as a...

Question 7

All tiers defined by the United States Environmental Protection Agency are classified as private costs of the organisation.

Accepted Answer

Tiers defined by the United States Environmental Protection Agency are actually standards for regulating emissions from vehicles and engines, and are not private costs of the organisation.

Question 8

Intangible benefits associated with environmental sustainability activities are always quite easy to quantify.

Accepted Answer

Intangible benefits, such as improved reputation or employee morale, are difficult to measure or assign a monetary value to.

Question 9

Define the term 'stakeholder' and explain the role that stakeholders have played in the area of sustainability, highlighting their influence on the organisation.

Accepted Answer

The answer of Define the term 'stakeholder' and explain the...

Question 10

The need to conform to legal regulations is the only reason firms are currently adopting a sustainability approach.

Accepted Answer

While legal regulations are an important factor in encouraging firms to adopt sustainable practices, there are also other reasons such as meeting customer and stakeholder expectations, improving reputation, reducing costs, and addressing long-term business risks.

Question 11

Management accountants are rapidly moving towards a system of not only identifying cost drivers, but also identifying new costs and performance measures in supply chain management to produce sustainability reports.

Accepted Answer

This statement is true. Management accountants are focusing on identifying new costs and performance measures related to supply chain management in order to produce sustainability reports. This helps organizations to identify areas where they can reduce costs and environmental impacts while also improving overall performance.

Question 12

ISO14031 suggests three types of indicators on how to identify performance measures. Identify these three indicators and discuss how they provide guidance on how to identify environmental performance measures. Provide examples of each indicator to illustrate the performance measured.

Accepted Answer

The answer of ISO14031 suggests three types of indicators on...

Question 13

Management accounting has always included economic, environmental and social impacts, as many costs are internal to the organisation.

Accepted Answer

Management accounting traditionally focused on financial information and internal cost management. The inclusion of economic, environmental, and social impacts (sustainability accounting) is a more recent development as organizations recognize the importance of these factors in long-term viability and stakeholder relations.

Question 14

Management performance indicators such as the number of cases of non-compliance with regulations, measure the efforts of management to improve the environmental performance of the organisation.

Accepted Answer

Management performance indicators such as the number of cases of non-compliance with regulations, do measure the efforts of management to improve the environmental performance of the organisation.

Question 15

Environmental management accounting can be further classified into financial, physical and social.

Accepted Answer

Environmental management accounting primarily focuses on the financial and physical aspects related to environmental and energy-saving processes within a company, not social aspects.

Question 16

The United States Environment Protection Authority has defined five tiers of environmental costs. Name these five tiers and provide a brief description with an example for each tier.

Accepted Answer

The answer of The United States Environment Protection Authority has...

Quiz 17: Sustainability and Management Accounting