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Chapter 2

10.2 EMA techniques

1 ABC 2 Lifecycle costing 3 Flow cost
accounting
 Environmental  Considers whole
costs hidden within cost of product  Looks at material
overheads are over its whole life flows and losses at
separately rather than single different stages of
identified accounting period production process

 Cost drivers are  Ensures all  Aims to reduce
identified environmental material quantities
costs, e.g. and wastage
 Product costs decommissioning,
more realistic are taken into  Related to input
account ensuring output analysis
 Reducing product viability which focuses on
incidence of cost waste in processes
drivers reduces  Considers how
costs environmental
costs can be
reduced from the
outset, e.g.
through careful
design

Key EMA techniques

Four

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