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Environmental management accounting

EMA techniques

Three key EMA techniques

1 2 3

ABC Lifecycle costing Flow cost accounting
 Environmental costs  Considers whole  Looks at material
hidden within cost of product over flows and losses at
overheads are its whole life rather different stages of
separately identified than single production process
accounting period
 Cost drivers are  Aims to reduce
identified  Ensures all material quantities
environmental and wastage
 Product costs more
realistic costs, e.g.  Related to input
decommissioning,
 Reducing incidence are taken into output analysis
of cost drivers account ensuring which focuses on
reduces costs product viability waste in processes

 Considers how
environmental costs
can be reduced
from the outset, e.g.
through careful
design

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