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

Answer rating: 100% (QA)

Social Cost Petrol Pollution Congestion cost Fine for coff... View the full answer