An organization faces many challenges when implementing an environmental accounting (EMA)system. Which of the following inherent challenges must an organization overcome when the costs associated with hazardous materials disposal are combined with other overhead costs in its accounting system?

Question

Quizplus · Accepted Answer

When the costs associated with hazardous materials disposal are combined with other overhead costs in an accounting system, they become hidden costs. These costs are not easily identifiable, and the organization may underestimate the true cost of hazardous materials disposal. Thus, the organization needs to overcome this inherent challenge while implementing an EMA system.

An Organization Faces Many Challenges When Implementing an Environmental Accounting