Environmental Life Cycle Costing (ELCC) in the aspect of cost management in the company

Abstract

Purpose -from a methodological point of view, life cycle costing (LCC) is well developed with respect to conventional costs. This paper aims at presenting the concept idea of Environmental Life Cycle Costing. It expresses the continuous study progress in environmental protection as well as accounting. Ecological and balanced understanding have become constituent of present applied management method. Owing to such an approach, one elicits informational base of cost and revenue connected with the product impact on natural and civic environment. Total cost of ELCC becomes supplement of traditional understanding of Environmental Life Cycle Costing. Moreover total cost of ELCC improves LCA technique. It is defined as the total cost of product's life cycle together with environmental costs. Design/Methodology/Approach -the article begins by looking at the driving forces for introducing life cycle costing, environmental life cycle costing, continues by identifying external and internal environmental cost issues, and concludes with supplemental conception. Findings -the literature on the subject is so limited. There is not sufficient to aid in estimation of environmental costs and benefits for a company. This paper may help in structuring the task of using ELCCA and LCC. Originality/Value -there has been increased interest recently in the presenting ELCC. This paper contributes with new outlooks and structures for that work. It offers theoretical and practical help to managers within companies.

Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate finance performance

“…The first stage, proactive, are conscious actions that the firm can engage in order to act more sustainably, pioneer sustainability in the industry, help set trends within the sector and to better enhance the overall reputation of the firm. Such engagements include eco-cost leadership and management, one of the key competitive forces among the majority of prevailing enterprises (Biernacki 2015). Schatsky found in his study of executive sustainability involvement that 21% of the boards directly approve and oversee such objectives, 17% of vice presidents (VP) or senior VP and 62% of C-level executive actively review such policies.…”

Innovative management accounting practices for sustainability of manufacturing small and medium enterprises

“…It also improves brand and reputation, strengthens stakeholder's relations, and boosts their bottom line. Finally, SMEs that employ innovative MAPs may better understand their impact of systemic risk and resource constraints of business operations which results in their sustainability 13 Biernacki (2015) ELCC deals with the collection of total costs connected with a product's life cycle. It introduces environmental and social cost into cost computation at the designing of the product.…”

“…Furthermore, the scholars argue that environmental strategic prospects are identified in the process of integrating, that is, environmental technology, energy conservation strategy, products design, market packaging, and recycling. These activities demand innovative MAPs to evaluate strategic cost/benefits analysis, alternative cost savings scenario's, full life-cycle costing (LCC), activity-based costing (ABC), reports on waste control, investment appraisals, management control and performance evaluation (Biernacki, 2015;Ntalamia, 2017;Nucci et al, 2016;Testa et al, 2011). For instance, innovative MAPs might identify, measures and link environmental and social accounts to capital budgeting (Ndwiga & van der Poll, 2013;Nuhu et al, 2016).…”

“…According to Biernacki (2015), innovative MAPs are not necessarily seeking the abolishment of traditional MAPs, however, it is more of the integration of environmental and social practices into MA. Hence, Namakonzi and Inanga (2014); and Maziriri and Mapuranga (2017:20) argue that innovative MAPs are holistic concepts, which combine environmental and social activities and integrates them into enterprises' strategy to assist environmental and social costs' identification and the measurement of production efficiency.…”

“…According to Biernacki (2015); Nucci et al (2016) and Drury (2018) PLCC projects and calculates a product's cost cumulatively over its total life cycle to ascertain if the expected profit in the manufacturing stage will defray the costs incurred over the entire manufacturing stage. They furthermore maintain that the identified costs incurred over several stages of a product's life cycle may offer an understanding of the product's total costs accumulated in its life cycle.…”