Page 6 - CIMA MCS Workbook August 2018 - Day 1 Suggested Solutions

CIMA NOVEMBER 2018 – OPERATIONAL CASE STUDY

EXERCISE 1(D) - ENVIRONMENTAL COSTING
Type of cost How it could apply to GymFiT’s environmental footprint

Prevention Costs • Regular maintenance of equipment, air conditioning devices to ensure
energy efficiency
• Additional cost of energy-efficient light bulbs
• Regular checking and maintenance of taps and showers to ensure they do
not drip and so waste water.
• Additional cost of insulation if used to reduce energy usage.
• Siting gym near to public transport to encourage customers not to drive

Appraisal Costs • Regular monitoring of energy usage to see if usage is higher than
expected
• Regular monitoring of water usage to see if higher than expected.
• Checking air conditioning is turned off when the gym is empty
• Sorting waste bins to separate out what can be recycled and so not
contribute to landfill.

Internal Failure • Cost of disposing of waste that cannot be recycled
Costs

External Failure • Water usage in showers
Costs • Carbon emissions to generate energy used in gym

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