Relationship between Green Design and Material Flow Cost Accounting in the Context of Effective Resource Utilization

Abstract

The consumption of fossil fuels has been gradually exhausting resources and deteriorating the environment on a global scale. There are two ways to resolve these problems: The application of green energy and new materials; and the development of energy efficiency techniques such as green design and material flow cost accounting. Material flow cost accounting does not create new sources of energy, but its implementation can encourage the effective use of resources or reduce the consumption of resources, and hence reduce the impact on the environment. The International Organization for Standardization has enacted material flow cost accounting as an international standard, and this will have a profound impact on multinational firms. This paper examines material flow cost accounting in the context of grounded theory, and conducts a case study on the companies which have implemented material flow cost accounting. The purpose of this research is to identify the relationship between material flow cost accounting and green design, and to provide a reference for the production design of the enterprise. After analysis, material flow cost accounting can generate detailed waste data, and provide a green design reference in actual energy conservation. These two outcomes complement each other, and will support achievement of the goal of mutual financial and environmental protection.

Cost Reduction Strategy In Manufacturing Industries Empirical Evidence From Indonesia

“…The MFCA is a new cost accounting method that identifies improvement opportunities in terms of material consumption and accrual of costs (Walz & Guenther, 2021). Material Flow Cost Accounting (MFCA) strongly supports the improvement of energy and material efficiency and is very useful, especially for manufacturing companies, and will contribute to the circular economy by simultaneously achieving both company environmental and economic goals (i.e., environmental performance and economic performance, including profit) through resource efficiency (Kokubu et al, 2023;Tu & Huang, 2019;Weyand et al, 2021). The increase in waste is a sign of inefficient production.…”

“…Furthermore, MFCA is more accurate in providing waste cost information than conventional cost accounting, which puts waste costs into general overhead (Tu & Huang, 2019). Material Flow Cost Accounting (MFCA) is a crucial management tool to manage manufacturing processes related to the flow of materials, energy, and data to ensure that the process takes place efficiently and is often associated with increased eco-efficiency, demonstrating high relevance to strategic decision-making processes within organizations (Tran & Herzig, 2020).…”

Selected Papers from the Eurasian Conference on Educational Innovation 2019

“…Context of Effective Resource Utilization" [38]. This study examines material flow cost accounting in the context of grounded theory, and conducts a case study on the companies which have implemented material flow cost accounting.…”

Contabilidad verde y desarrollo sostenible: tendencias y perspectivas

“…Así mismo, Flamer (2015), indica que las organizaciones mantienen una relación constante con los recursos naturales ya sea, porque son materias primas de producción o porque generan un entorno agradable y saludable para la ejecución de las actividades, además de las obligaciones impartidas por la ley para la protección de los recursos y el compromiso de la entidad con las generaciones futuras. Paralelamente Tu & Huang (2019), afirman que en la dimensión económica, la empresa se encarga de impulsar la economía y las condiciones del mercado que afectan los objetivos, las estrategias y las planeaciones que realiza la organización.…”