QUESTION

An important function of Environmental Accounting is to bring environmental costs to the attention of corporate stakeholders who may be motivated to identify ways of reducing those costs along with improving environmental quality.

(a) What is meant by Environmental Accounting and briefly explain its significance

(b) Explain briefly, with examples, the meaning of the following cost terms

(i) Regulatory costs

(ii) Voluntary costs

(iii) Lifecycle costs

(iv) Contingent liability cost

(c) Explain how the use of environmental accounting can help in

(i) Cost allocation and,

(ii) Capital budgeting

(d) Briefly describe four benefits an entity can derive from adopting Environmental Accounting