Abstract
Due to the rise in environmental awareness, corporate companies have shifted their focus from an obsession with short-term profits to contemplating long-term strategies to achieve sustainable management. Effective use of resources is the primary indicator of this achievement. Fulfillment of corporate social responsibility and thinking beyond the regulatory aspects of corporate sustainable management are goals that have continually attracted attention worldwide. Material flow cost accounting based on ISO 14051, which was announced by the International Organization for Standardization (ISO), is a tool that can be used to achieve a balance between the environment and economy. We focused on using ISO 14051-based material flow cost accounting as an analytical evaluation tool from the perspectives of finance and accounting personnel. We conducted a case study on a flat-panel parts supplier to determine whether the efficient use of recycled glass could reduce company costs. The primary finding is that the film layer on recycled washed glass tends to be stripped during the production process, causing increased reprocessing costs and thus rendering the cost of renewable cleaning higher than that of reworking. This study revealed that the ISO 14051-based material flow cost accounting analysis constitutes a valuable management tool, thereby facilitating the promotion of sustainable development.
Highlights
The rapid industry development, the depletion of natural resources, and the rise in environmental awareness have led corporate companies to shift their attentions from short-term profits to long-term strategies to achieve sustainable management and smooth progress into a new era
We described the standard operating procedures for introducing Material flow cost accounting (MFCA) analysis by using the “Introductory Manual for Industry Implementation of Material Flow Cost Accounting” from the Taiwan Ministry of Economic Affairs and the “Material Flow Cost Accounting Introduction
Results of Material Flow Cost-Accounting Analysis We performed an MFCA analysis on each quantity center based on the information provided in the aforementioned material flow model record sheet and subsequently produced an MFCA balance sheet
Summary
The rapid industry development, the depletion of natural resources, and the rise in environmental awareness have led corporate companies to shift their attentions from short-term profits to long-term strategies to achieve sustainable management and smooth progress into a new era. Environmental accounting (or green accounting) is an environmental analytical tool that measures and communicates the costs and benefits of the overall economic effects [2,3]. Environmental accounting has garnered international attention and the disclosure of corporate environmental information is actively encouraged while theoretical frameworks and practical guidelines are gradually developed. In 2007, the Environmental Protection Administration of Taiwan formulated a set of environmental-accounting guidelines, which are currently commonly adopted by Taiwanese corporations as the foundation for environmental-accounting practices
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