 |
| 1 | |
Jenny Greene is currently studying environmental and social management accounting. She is confused about the term corporate social responsibility and has asked to you to provide a brief definition. What is meant by the term ‘corporate social responsibility’? |
| | A) | The reporting of financial information that focuses on three aspects of performance: financial (or economic), social and environmental. |
| | B) | The impact of an organisation’s behaviour on society, including the broader community, employees, customers and suppliers. |
| | C) | The impact of an organisation’s performance on the environment, including natural systems such as land, air and water as well as people and living organisms. |
| | D) | It involves organisations taking into account the social and environmental impact of corporate activity when making decisions. |
|
|
|
| 2 | |
What is meant by the term sustainability reporting? |
| | A) | The reporting of financial information that focuses on three aspects of performance: financial (or economic), social and environmental. |
| | B) | The impact of an organisation’s behaviour on society, including the broader community, employees, customers and suppliers. |
| | C) | The impact of an organisation’s performance on the environment, including natural systems such as land, air and water as well as on people and living organisms. |
| | D) | Environmentally-related management accounting systems and practices that include life cycle costing, environmental cost accounting, environmental performance measures, assessment of environmental benefits and strategic planning for environmental management. |
|
|
|
| 3 | |
The Acme Chemical Company’s board of directors is currently investigating the implementation of sustainability reporting. But they are concerned that disclosing information regarding their social performance may be detrimental to their share price. What is meant by the term ‘social performance’? |
| | A) | The reporting of financial information that focuses on three aspects of performance: financial (or economic), social and environmental. |
| | B) | The impact of an organisation’s behaviour on society, including the broader community, employees, customers and suppliers. |
| | C) | The impact of an organisation’s performance on the environment, including natural systems such as land, air and water as well as on people and living organisms. |
| | D) | Environmentally-related management accounting systems and practices that include life cycle costing, environmental cost accounting, environmental performance measures, assessment of environmental benefits and strategic planning for environmental management. |
|
|
|
| 4 | |
The Acme Chemical Company’s board of directors is currently investigating the implementation of sustainability reporting. But they are concerned that disclosing information regarding their environmental performance may be detrimental to their share price. What is meant by the sustainability reporting term ‘environmental performance’? |
| | A) | The reporting of financial information that focuses on three aspects of performance: financial (or economic), social and environmental. |
| | B) | The impact of an organisation’s behaviour on society, including the broader community, employees, customers and suppliers. |
| | C) | The impact of an organisation’s performance on the environment, including natural systems such as land, air and water as well as on people and living organisms. |
| | D) | Environmentally-related management accounting systems and practices that include life cycle costing, environmental cost accounting, environmental performance measures, assessment of environmental benefits and strategic planning for environmental management. |
|
|
|
| 5 | |
The Acme Chemical Company’s board of directors is currently investigating the implementation of environmental management accounting (EMA). The Managing Director, Ben Apfelbaum, asks the Chief Financial Officer, Nancy Forrest, what is meant by the term ‘environmental management accounting’. She correctly responds that it (choose one of the following): |
| | A) | is the reporting of financial information that focuses on three aspects of performance: financial (or economic), social and environmental |
| | B) | is the impact of an organisation’s behaviour on society, including the broader community, employees, customers and suppliers |
| | C) | is the impact of an organisation’s performance on the environment, including natural systems such as land, air and water as well as on people and living organisms |
| | D) | is environmentally-related management accounting systems and practices that include life cycle costing, environmental cost accounting, environmental performance measures, assessment of environmental benefits and strategic planning for environmental management |
|
|
|
| 6 | |
Financially-oriented environmental management accounting (EMA) information includes: |
| | A) | techniques that focus on supplying information to management that accounts for the organisation’s impact on the natural environment, measured in physical terms |
| | B) | techniques that focus on supplying information to management that accounts for the organisation’s impact on the natural environment measured in kilograms, tonnes, kilowatt hours, decibels, and so on |
| | C) | physical data that is identified, collected, estimated, analysed and reported for use by internal decision makers within the organisation |
| | D) | environmental costs, environmental product costing, environmentally-induced capital expenditure and environmentally-induced revenues (or benefits) expressed in monetary terms |
|
|
|
| 7 | |
Conventional management accounting tends to forget to measure many environmental and social impact costs. Forgotten environmental and social impact costs include: |
| | A) | low worker morale due to poor occupational health and safety standards that resulted in an employee having a hand amputated in a press that was not fitted with a safety guard |
| | B) | the long-term cost to the local community of legally discharging minute quantities of heavy metals into the local water course over a fifty-year period |
| | C) | the social, cultural and environmental impact of a mining venture located in a remote area of developing country on the isolated indigenous people of the region |
| | D) | all of the given answers |
|
|
|
| 8 | |
Smasher Crash Repairs Pty Ltd is a large panel shop/smash repairs business located in an area zoned for industry. Bill Smith (the owner of the business), the local council and the Environmental Protection Authority (EPA) are concerned about the waste management systems and ventilation systems that are currently used by Smasher Crash Repairs at its place of business. Last year Smasher was prosecuted for discharging automotive paint and chemicals into the sewerage and drainage systems and for not providing a safe work place for its employees due to poor ventilation in its automotive paint booths. Ken Jones (Smasher’s accountant), Rocco Arena (the panel shop manager) and Denis Haven, the union shop steward formed a team to discuss the issues. While there are already waste management systems in place, the team knows that there are areas where performance must be improved. At the end of last year, Smasher took its first step in improving its environmental practices: new monitoring and alarm systems were installed, upgrades were made to the ventilation system and employees were trained in responsible environmental practices. Ken Jones has isolated the environmental costs for the last financial year. These are as follows: Depreciation on new ventilation system | $75 600 | Costs of medical check-ups for employees due to poor ventilation system | 5 400 | Employee training costs to reduce environmental accidents | 22 000 | Fine for discharging automotive paint and chemicals into sewerage and drainage systems | 65 000 | Depreciation on new monitoring and alarm systems | 87 200 | Cost of new monitoring and alarm systems (includes installation) | 872 000 | Cost of upgrading ventilation system | 756 000 | Inspection of drainage and sewerage systems | 24 600 | Cost of legally disposing of waste automotive paint and chemicals in landfill | 14 300 | Occupational health and safety fine due to poor ventilation system | 2 500 | Inspection of monitoring and alarm systems | 19 600 |
The prevention costs are: |
| | A) | $131 400 |
| | B) | $97 600 |
| | C) | $19 700 |
| | D) | $67 500 |
|
|
|
| 9 | |
Smasher Crash Repairs Pty Ltd is a large panel shop/smash repairs business located in an area zoned for industry. Bill Smith (the owner of the business), the local council and the Environmental Protection Authority (EPA) are concerned about the waste management systems and ventilation systems that are currently used by Smasher Crash Repairs at its place of business. Last year Smasher was prosecuted for discharging automotive paint and chemicals into the sewerage and drainage systems and for not providing a safe work place for its employees due to poor ventilation in its automotive paint booths. Ken Jones (Smasher’s accountant), Rocco Arena (the panel shop manager) and Denis Haven, the union shop steward formed a team to discuss the issues. While there are already waste management systems in place, the team knows that there are areas where performance must be improved. At the end of last year, Smasher took its first step in improving its environmental practices: new monitoring and alarm systems were installed, upgrades were made to the ventilation system and employees were trained in responsible environmental practices. Ken Jones has isolated the environmental costs for the last financial year. These are as follows: Depreciation on new ventilation system | $75 600 | Costs of medical check-ups for employees due to poor ventilation system | 5 400 | Employee training costs to reduce environmental accidents | 22 000 | Fine for discharging automotive paint and chemicals into sewerage and drainage systems | 65 000 | Depreciation on new monitoring and alarm systems | 87 200 | Cost of new monitoring and alarm systems (includes installation) | 872 000 | Cost of upgrading ventilation system | 756 000 | Inspection of drainage and sewerage systems | 24 600 | Cost of legally disposing of waste automotive paint and chemicals in landfill | 14 300 | Occupational health and safety fine due to poor ventilation system | 2 500 | Inspection of monitoring and alarm systems | 19 600 |
The appraisal costs are: |
| | A) | $131 400 |
| | B) | $97 600 |
| | C) | $19 700 |
| | D) | $67 500 |
|
|
|
| 10 | |
Smasher Crash Repairs Pty Ltd is a large panel shop/smash repairs business located in an area zoned for industry. Bill Smith (the owner of the business), the local council and the Environmental Protection Authority (EPA) are concerned about the waste management systems and ventilation systems that are currently used by Smasher Crash Repairs at its place of business. Last year Smasher was prosecuted for discharging automotive paint and chemicals into the sewerage and drainage systems and for not providing a safe work place for its employees due to poor ventilation in its automotive paint booths. Ken Jones (Smasher’s accountant), Rocco Arena (the panel shop manager) and Denis Haven, the union shop steward formed a team to discuss the issues. While there are already waste management systems in place, the team knows that there are areas where performance must be improved. At the end of last year, Smasher took its first step in improving its environmental practices: new monitoring and alarm systems were installed, upgrades were made to the ventilation system and employees were trained in responsible environmental practices. Ken Jones has isolated the environmental costs for the last financial year. These are as follows: Depreciation on new ventilation system | $75 600 | Costs of medical check-ups for employees due to poor ventilation system | 5 400 | Employee training costs to reduce environmental accidents | 22 000 | Fine for discharging automotive paint and chemicals into sewerage and drainage systems | 65 000 | Depreciation on new monitoring and alarm systems | 87 200 | Cost of new monitoring and alarm systems (includes installation) | 872 000 | Cost of upgrading ventilation system | 756 000 | Inspection of drainage and sewerage systems | 24 600 | Cost of legally disposing of waste automotive paint and chemicals in landfill | 14 300 | Occupational health and safety fine due to poor ventilation system | 2 500 | Inspection of monitoring and alarm systems | 19 600 |
The internal failure costs are: |
| | A) | $131 400 |
| | B) | $97 600 |
| | C) | $19 700 |
| | D) | $67 500 |
|
|
.