ACCA PM · Chapter 4 · Question 8 of 10
An environmental management accounting technique records all physical inputs of materials and energy, and balances them against outputs of finished products, waste and emissions, so that unexplained differences can be investigated. What is this technique?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Input/output analysis
Explanation
Input/output analysis operates on the principle that what comes in must go out: physical inputs are balanced against product outputs and waste. Any difference highlights material losses or unrecorded waste that can be costed and reduced. Flow cost accounting extends this idea by valuing the material flows.
More Throughput accounting and environmental management accounting MCQs
- Q10Using Hansen and Mendoza's classification of environmental costs, the cost of cleaning up a lake that has been polluted by a factory's…
- Q1Rho Co makes product P, which sells for $50 per unit and uses $20 of direct materials per unit. Each unit needs 0.5 hours on the…
- Q2Rho Co makes product P, which sells for $50 per unit and uses $20 of direct materials per unit. Each unit needs 0.5 hours on the…
- Q3In throughput accounting, how is throughput defined?
- Q4A product currently has a throughput accounting ratio of 0.9. Which of the following actions would improve its TPAR?