Page 5 - CIMA OCS Workbook May 2019 - Day 1 Tasks
P. 5
SUGGESTED SOLUTIONS
EXERCISE 1(D) - ENVIRONMENTAL COSTING
Type of cost How it could apply to VitaMine’s environmental footprint
Prevention Costs • Regular maintenance of production machinery, heating, air
conditioning devices to ensure energy efficiency
• Purchase of electric / hybrid vehicles for haulage within Eastland
• Regular maintenance of haulage vehicles to reduce emissions
• Logistics planning software to reduce journey lengths for distribution
• Reassessment of use of plastic packaging?
Appraisal Costs • Regular monitoring of energy usage to see if usage is higher than
expected
• Sorting bins in the factory to separate out what can be recycled and
so not contribute to landfill.
Internal Failure Costs • Cost of recycling damaged or substandard products rather than
contributing to landfill.
External Failure Costs • Very difficult for VitaMine to monitor the extent to which customers
are recycling packaging (e.g. plastic blister packs and cardboard
packaging) when they dispose of them or whether they are
contributing to landfill.
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