Auckland Coffee has evaluated the social and environmental costs of its coffee roasting facility. The costs are
Question:
Auckland Coffee has evaluated the social and environmental costs of its coffee roasting facility. The costs are listed below.
Cost ($) | |
Depreciation of oven fume extractor system | 4,000 |
Employee training costs to reduce environmental accidents | 5,600 |
Monitoring systems to detect fumes | 4,800 |
Fine from Auckland city council for dumping coffee grounds into the sewer | 5,600 |
Inspection of drainage systems to detect problems with discharge | 1,500 |
Reduction in value of nearby houses due to odour | 53,000 |
Routine cleaning of extractor system to remove coffee residues | 2,500 |
Disposal of waste coffee grounds | 5,600 |
Lost sales due to poor environmental reputation | 8,000 |
Obtaining ISO 14001 certificate | 10,000 |
Workers’ compensation claims due to poor environmental practices | 7,000 |
Medical costs relating to communities inhaling polluting air caused by Auckland Coffee | 7,500 |
Required 6.1: As a management accountant of Auckland Coffee, calculate the social costs that relate to the operation. |
Required 6.2 Prepare an environmental cost report showing Environmental cost classification suggested by the Environmental Protection Agency (EPA). In your report also state the reasons for your categorization |
International Business The Challenge of Global Competition
ISBN: 978-0077606121
13th edition
Authors: Donald Geringer Ball, J. Michael Geringer, Jeanne M. McNett, Michael S. Minor