An organization faces many challenges when implementing an environmental accounting (EMA)system. Which of the following inherent challenges must an organization overcome when it finds that its traditional accounting system does not track information regarding lost sales due to environmental regulation?

Question

Quizplus · Accepted Answer

The inherent challenge faced by the organization in this scenario is the historical orientation of accounting. Traditional accounting systems have not typically taken into account environmental impacts, and therefore may not track information on lost sales due to environmental regulation. This can be addressed by implementing an EMA system that includes environmental costs in financial reporting.

An Organization Faces Many Challenges When Implementing an Environmental Accounting