Abstract
The integration of activity-based costing (ABC) and environmental cost accounting (ECA) systems provides companies with more accurate information to make both well-rounded and effective decisions. The purpose of this study is to propose an effective approach to integrate both ABC and ECA systems. A case study analysing process is used to compare the traditional accounting system and the ABC system for allocating environmental costs. The results enable managers not only to understand financial information regarding the activities for environmental protection and the percentage of environmental costs in the overall product costs but also to make more objective and accurate decisions.
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