Page 66 - PM Integrated Workbook 2018-19
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Chapter 2
10.2 EMA techniques
ABC Lifecycle costing
Environmental costs Considers whole cost of product over
hidden within overheads its whole life rather than single
are separately identified accounting period
Cost drivers are identified Ensures all environmental costs,
e.g. decommissioning, are taken into
account, ensuring product viability
Product costs more Considers how environmental costs
realistic can be reduced from the outset,
e.g. through careful design
Flow cost accounting Input/Outflow analysis
Looks at material flows Records material inflows and balances
and losses at different this with outflows on the basis that,
stage of the production what comes in, must go out
process
Aims to reduce material Accounting for outputs both in terms of
quantities and wastage physical quantities and, at the end of
the process, in monetary terms too
Related to input/output
analysis, which focuses on
waste in processes
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