 provide the concept of environmental management accounting(EMA)  development of environmental management accounting  a basic framework of identifying environmental costs  techniques to implement EMA  and identify the benefits gained from implementing EMA

 is simply a specialized part of management accounts that focused on the things such as the cost of energy, water and the disposal of wastes  is concerned with the accounting information needs of managers in relation to corporate activities that affect the environment  Provide information for internal decision making purpose  provide data to support organizational calculations for environmental management.

Physical EMA (PEMA) Monetary EMA(MEMA) Focus onrefer to Company’s impact on the natural environment environmental aspects of corporate activities Express in term of physicals unit such as kilograms, cubic meters or joules monetary units Examplekilograms of material per customer served and joules of energy used per unit product Costs of fines for inflowing and breaking environmental laws, expenditure on cleaner production Type of measurement used and information non-financial measures and information financial measures and information

EMA Techniques Costing analysis Life cycle assessment (LCA) Activity based costing(ABC) Flow cost accounting Investment appraisal Total cost assessment (TCA) Performance management Environmental Balance Scorecard (EBS) or Sustainability Balance Scorecard(SBSC)

EMA TechniquesEMA ToolsDescription Costing analysis Life cycle assessment (LCA) is a technique which identifying and quantifying energy and wastes released to the environment, assess their environmental impact, and evaluating opportunity for improvement Activity based costing(ABC) enables entities to allocate all cost, including environmental cost, to the cost centers and cost drivers based on the activities Flow cost accounting Is a technique that makes material flows transparent by looking at the physical quantities. Investment appraisal Total cost assessment (TCA) Is a useful tool for identifying, analyzing, and improving cost estimates in the areas such as energy, waste, and prevention management, Performance management Environmental Balance Scorecard (EBS) or Sustainability Balance Scorecard(SBSC) may align all corporate activities, including ones that may be affected by and may impact on environment, to implement corporate strategies

Benefits of EMA Description Cost reduction paying close attention to the use of resources and minimizes the wastage managing the flows and use of materials and energy with greater accuracy Innovation bring innovation in the process of production developing reusable packaging system with suppliers recycled the product produce the eco-friendly product Better product pricing costs may be offset by government grants producing new products can lead to increased sales and may a possible sell the products for a premium price improve the reputation of the business increase shareholder value