Deck 17: Sustainability Accounting

Question 1

In recent times, all companies have organizational strategies for communicating information about sustainability efforts and performance, called sustainability reporting.

Answer 1

False

Question 2

If an organization has a strategy to use only recycled inputs, then their budgets and plans likely include: I. Increased costs to obtain materials
II) Plans to source the materials
III) Milestone dates by which achievements should occur

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Answer 2

D

Question 3

Most companies are motivated to issue sustainability reports by ethical considerations.

Answer 3

True

Question 4

External impacts are costs and benefits that are recognized in the entity's accounting system, but the information for the values are generated outside the organization.

Question 5

The triple bottom line refers to which of the following three value systems:

A) economic, environmental, and social.
B) economic, organic, and social
C) economic, environmental, and ecological
D) economic, environmental, and sustainable

Question 6

Sustainability management accounting includes: I. budgeting and forecasting
II) assurance services
III) implementing and monitoring internal controls

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 7

Strategies for sustainable management are unlikely to be developed unless managers:

A) have identified specific operating plans.
B) have established performance measurement for sustainable initiatives.
C) have identified sustainability as part of the organizational vision and core competencies.
D) have detailed operative plans with respect to sustainable management.

Question 8

"Sustainable management" is the ability to direct the course of an enterprise in ways that reduce all forms of capital (human, natural, manufactured, and financial).

Question 9

Which of the following is a synonym for sustainability?

A) Double bottom line
B) Corporate Social Responsibility
C) Human capital
D) Economic impact

Question 10

The triple bottom line refers to the effect in which a company's profit increases by three-fold when they begin to consider environmental and social aspects.

Question 11

Sustainability accounting includes: I. financial accounting value systems
II) environmental value systems
III) social value systems

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 12

Internal Sustainability Reporting includes I. Sustainability reports for shareholders
II) Support for Operating Plans
III) Support for Strategic Plans

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 13

The triple bottom line includes economic, environmental, and social considerations.

Question 14

Management accountants contribute to sustainability efforts by establishing internal and external measurement and reporting processes.

Question 15

Internal impacts are also called:

A) Direct impacts
B) Private impacts
C) None of the above
D) Both

Question 16

Communicating information about sustainability efforts and performance

A) is required by GAAP
B) is consistent across all organizations
C) is required by regulation
D) varies widely across organizations

Question 17

Sustainability accounting is:

A) recording and analysis of quantitative and qualitative information about sustainable practices and performance
B) quantifying the costs of sustainable practices
C) reporting to external stakeholders about sustainability
D) reporting qualitative information about an organizations sustainable practices and performance.

Question 18

Tracking and tracing sustainability costs, and identifying cost pools and related cost drivers, are crucial for sustainability management accounting purposes.

Question 19

Sustainability accounting is the systematic recording, reporting, and analysis of quantitative and qualitative information about sustainable management practices and performance.

Question 20

Internal impacts are costs and benefits inside the organization that are recognized in the entity's conventional accounting system.

Question 21

All of the following are recommended strategies for incorporating sustainability into a balanced scorecard except:

A) Scaling the measures in the financial perspective by the cost of externalities.
B) An additional "sustainability" perspective can be added to the scorecard
C) quantitative separate sustainability balanced scorecard can be developed
D) Environmental and social strategic objectives can be integrated within the traditional four perspectives.

Question 22

Traditional management accounting practices tend to overlook potentially significant costs and benefits within relevant cost decision making because:

A) accounting recognition is delayed when costs are contingent on future events
B) relevant revenues and costs are not isolated in the accounting system
C) opportunity costs are not measured
D) all of the above.

Question 23

In "Material flow cost accounting", final product that is produced and transferred out is often referred to as:

A) Completed units
B) Positive product
C) Negative product
D) Outputs

Question 24

Life cycle assessment refers to: I. evaluating all the activities involved in the design, development, production, sale, transportation, and disposal of a product or service
II) is often referred to as cradle to grave
III) involves summing the costs of the activities throughout both internal and external value chains

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 25

In 2008, the top two motivations to explain sustainability reporting were:

A) ethical considerations and economic considerations
B) reputation or brand and innovation & learning
C) employee motivation and risk management
D) strengthened supplier relationships and access to capital

Question 26

Greenwashing is

A) using environmentally safe cleaning products
B) publicizing environmental friendly policies without making substantive changes in their environmental impact
C) ensuring that produce is washed and does not contain e-coli
D) when carwashes reuse the water, rather than using new water for each car washed.

Question 27

GRI core indicators include: I. economic indicators
II) environmental indicators
III) labor practices indicators

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 28

To reduce the suspicion that a company is engaged in "impression management", a company's sustainability information can I. follow Global Reporting Initiative (GRI) standards
II) include lots of visuals suggesting environmental friendliness
III) be transparent

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question 29

Material flow accounting divides outputs into three major categories:

A) good units, scrap, and waste
B) products, emissions, and byproducts
C) products, waste, and emissions
D) good units, bad units, and waste

Question 30

Firms that report GRI core indicators are more likely to: I. improve sustainability
II) establish programs to reach targets for metrics reported
III) conform with laws

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III