The costs incurred by a manufacturer of lawn mowers to develop a method to reduce carbon dioxide emissions from its products would be categorized as what type of cost by an environmental management accounting system (EMA)?

Question

Quizplus · Accepted Answer

The costs to develop a method to reduce emissions are considered research and development (R&D) costs, as they involve creating new processes or technologies.

The Costs Incurred by a Manufacturer of Lawn Mowers to Develop