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| 1 | |
The Pegasus Oil Company reports the following: - the costs of its air quality monitoring systems (including its acquisition and on-going running costs)
- the training of its employees in pollution prevention and environmentally sensitive methods of cleaning up of pollution such as oil spills
- legal costs and fines related to environmental matters
- record keeping and reporting of environmental matters
- the costs involved in the prevention, mitigation and remediation of environmental impacts
Pegasus is reporting: |
| | A) | environmental costs |
| | B) | environmental product costs |
| | C) | environmentally-induced capital expenditure |
| | D) | environmentally-induced revenues |
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| 2 | |
The Pegasus Oil Company is involved in tracing the direct and indirect environmental costs to products. These direct and indirect environmental costs include the costs of waste management, permits and fees and recycling. These costs are: |
| | A) | environmental costs |
| | B) | environmental product costs |
| | C) | environmentally-induced capital expenditure |
| | D) | environmentally-induced revenues |
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| 3 | |
The United States Environment Protection Authority has defined five tiers of environmental costs. They are: |
| | A) | direct costs, hidden costs, contingent costs, relationship and image costs, and societal costs |
| | B) | conventional costs, hidden costs, contingent costs, relationship and image costs, and private costs |
| | C) | conventional costs, hidden costs, contingent costs, relationship and image costs, and societal costs |
| | D) | conventional costs, direct costs, hidden costs, relationships and image costs, and societal costs |
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| 4 | |
The intangible benefits resulting from the campaign to reduce the use of throw-away, single-use plastic shopping bags by customers include: |
| | A) | improved industry reputation and customer relationships and reduced damage to the environment |
| | B) | reduced cost of lowering the number of throw-away, single-use plastic shopping bags used by customers |
| | C) | increased revenue resulting from the purchase of multiple-use shopping bags by customers |
| | D) | reduced waste disposal costs |
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| 5 | |
The aim of environmental management at The Body Shop is to introduce and encourage sound environmental practices, not just to produce an environmental report for the interest of the company’s stakeholders. Their core values include: |
| | A) | protect the planet, no animal testing, strengthen the community, activate self esteem and defend human rights |
| | B) | protect the planet, no animal testing, activate self esteem and defend human rights |
| | C) | provide environmental training to customers, activate self esteem and defend human rights |
| | D) | improve customer recycling options, protect the planet, no animal testing and defend human rights |
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| 6 | |
Wells Manufacturing has performed an analysis of their environmental costs, listing prevention, appraisal, internal and external failure costs. The managers at Wells could use this information to: |
| | A) | investigate underlying causes of internal failure costs |
| | B) | negotiate with suppliers to recycle packaging |
| | C) | assess prevention of future external failure |
| | D) | all of the given answers |
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| 7 | |
Financially oriented EMA focuses on: |
| | A) | environmental reporting |
| | B) | supplying financial information to management about the environmental impact of the organisation’s activities |
| | C) | flow of water, materials and energy |
| | D) | quantities of noxious emissions |
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| 8 | |
Woolly Socks Company, a large hosiery manufacturer currently located in Bendigo, Victoria, is investigating the transfer of its manufacturing facilities to Bangladesh. Operating data for the Bendigo and Bangladesh facilities are as follows: | | Bendigo | Bangladesh | Number of pairs of socks manufactured per annum | 2 000 000 | 2 000 000 | Yarn per pair of socks | A$1.25 | A$0.85 | Labour time per pair of socks | 6 mins | 12 mins | Labour cost per hour | A$22.00 | A$0.80 | Waste per pair of socks | 5 grams | 20 grams | Effective working weeks per annum per employee | 40 | 48 | Fixed manufacturing cost per annum | A$750 000 | A$60 000 | Delivery time | 3 days | 35 days |
If the Bangladesh manufacturing facility is opened, the Bendigo manufacturing facility will be closed. If the Bendigo manufacturing facility is closed, the workers will almost certainly be unemployed long term due to a lack of alternative manufacturing employment in the area. There is a great deal of opposition in the local community, including among local council and business owners, regarding the closure of Bendigo manufacturing facility. The Bendigo manufacturing facility has been considered by the local community to be an excellent corporate citizen with high levels of social and environmental awareness. Using financial data only, the annual cost of manufacturing pure wool socks in Bangladesh is: |
| | A) | $2 020 000 |
| | B) | $2 080 000 |
| | C) | $2 770 000 |
| | D) | $6 900 000 |
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| 9 | |
Woolly Socks Company, a large hosiery manufacturer currently located in Bendigo, Victoria, is investigating the transfer of its manufacturing facilities to Bangladesh. Operating data for the Bendigo and Bangladesh facilities are as follows: | | Bendigo | Bangladesh | Number of pairs of socks manufactured per annum | 2 000 000 | 2 000 000 | Yarn per pair of socks | A$1.25 | A$0.85 | Labour time per pair of socks | 6 mins | 12 mins | Labour cost per hour | A$22.00 | A$0.80 | Waste per pair of socks | 5 grams | 20 grams | Effective working weeks per annum per employee | 40 | 48 | Fixed manufacturing cost per annum | A$750 000 | A$60 000 | Delivery time | 3 days | 35 days |
If the Bangladesh manufacturing facility is opened, the Bendigo manufacturing facility will be closed. If the Bendigo manufacturing facility is closed, the workers will almost certainly be unemployed long term due to a lack of alternative manufacturing employment in the area. There is a great deal of opposition in the local community, including among local council and business owners, regarding the closure of Bendigo manufacturing facility. The Bendigo manufacturing facility has been considered by the local community to be an excellent corporate citizen with high levels of social and environmental awareness. Using financial data only, the cost of manufacturing socks in Bendigo is: |
| | A) | $2 020 000 |
| | B) | $2 080 000 |
| | C) | $7 650 000 |
| | D) | $6 900 000 |
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| 10 | |
Woolly Socks Company, a large hosiery manufacturer currently located in Bendigo, Victoria, is investigating the transfer of its manufacturing facilities to Bangladesh. Operating data for the Bendigo and Bangladesh facilities are as follows: | | Bendigo | Bangladesh | Number of pairs of socks manufactured per annum | 2 000 000 | 2 000 000 | Yarn per pair of socks | A$1.25 | A$0.85 | Labour time per pair of socks | 6 mins | 12 mins | Labour cost per hour | A$22.00 | A$0.80 | Waste per pair of socks | 5 grams | 20 grams | Effective working weeks per annum per employee | 40 | 48 | Fixed manufacturing cost per annum | A$750 000 | A$60 000 | Delivery time | 3 days | 35 days |
If the Bangladesh manufacturing facility is opened, the Bendigo manufacturing facility will be closed. If the Bendigo manufacturing facility is closed, the workers will almost certainly be unemployed long term due to a lack of alternative manufacturing employment in the area. There is a great deal of opposition in the local community, including among local council and business owners, regarding the closure of Bendigo manufacturing facility. The Bendigo manufacturing facility has been considered by the local community to be an excellent corporate citizen with high levels of social and environmental awareness. Which of the following social and environmental costs should be considered by Woolly Socks board of directors before deciding whether to relocate manufacturing from Bendigo to Bangladesh? |
| | A) | Costs of the social dislocation that will occur with a large number of Bendigo manufacturing personnel being retrenched or taking early retirement. |
| | B) | Economic impact of the closure of the manufacturing facility on the businesses located within the Bendigo region. |
| | C) | Cost of ethically disposing of additional yarn waste in Bangladesh. |
| | D) | All of the given answers. |
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