Material Flow Cost Accounting Research Articles

Pathways to sound management of excavated soil and rock: A case study in Shenzhen

Due to underground infrastructure and earthworks, the excavated soil and rock (ESR) emerges as the primary construction and demolition (C&D) waste stream in numerous urban areas. The transportation and disposal of ESR entail substantial costs and adverse environmental impacts, necessitating optimized management approaches. However, the environmental and economic evaluation of various ESR disposal methods remains insufficiently explored. This study presents a comprehensive analysis of a city-scale ESR management system through a case study in Shenzhen. This rapidly expanding megacity generated an annual average of 77 million m3 of ESR. We dynamically evaluate the sustainability of ESR management by harnessing a synergistic methodology that integrates material flow cost accounting (MFCA) with life cycle thinking. The findings reveal that cross-regional transportation emerges as the prioritized ESR disposal method, accounting for 72 ± 2% of the total ESR treatment, resulting in greenhouse gas (GHG) emissions of 584 ± 35 kt CO2 eq. and economic costs of 8358 ± 64 million USD per year. Scenario analysis reveals that sound recycling routes, accompanied by policy support, can yield environmental and economic benefits by reducing GHG emissions by 574 ± 55 kt CO2 eq. and generating net profits of 248 ± 15million USD per year in the coming decade. This study exemplifies the complementary methodologies supporting sustainable ESR management in Shenzhen while offering valuable insights for other cities in China and beyond.

Material flow cost accounting in Vietnam: a multi-level exploration

PurposeOf critical concern to the world is the need to reduce consumption and waste of natural resources. This study provides a multi-level exploration of the ways situational and transformational links between levels and challenges are related to the adoption and utilization of material flow cost accounting in Vietnam, to encourage green productivity.Design/methodology/approachBased on triangulation of public documents at different institutional levels and a set of semi-structured interviews, situational and transformational links and challenges for material flow cost accounting in Vietnam are examined using purposive and snowball sampling of key actors.FindingsUsing a multi-level framework the research identifies six situational and transformational barriers to implementation of material flow cost accounting and suggests opportunities to overcome these. The weakest links identified involve macro-to meso-situational and micro-to macro-transformational links. The paper highlights the dominance of meso-level institutions and lack of focus on micro transformation to cut waste and enable improvements in green productivity.Practical implicationsThe paper identifies ways for companies in Vietnam to reduce unsustainability and enable transformation towards sustainable management and waste reduction.Originality/valueThe paper is the first to develop and use a multi-level/multi-time period framework to examine the take-up of material flow cost accounting to encourage transformation towards green productivity. Consideration of the Vietnamese case builds understanding of the challenges for achieving United Nations Sustainable Development Goal number 12, to help enable sustainable production and consumption patterns.

Peran Green Intellectual Capital dan Material Flow Cost Accounting Terhadap Kinerja Perusahaan Sebagai Perwujudan Energi Berkelanjutan

This research aims to examine the effect of implementing green relational intellectual, green structural capital, green human capital, material flow cost accounting on company performance using return on assets as an indicator. The population in this study are energy sector companies listed on the Indonesia Stock Exchange 2019-2023, using purposive sampling techniques, so the samples used are energy sector companies that are consistent in publishing financial reports and paying attention to their green intellectual capital. The total samples used in the research were 125 research samples. The method used in the research is multiple linear regression analysis test. Based on the results of the analysis, it shows that there is a significant influence of green intellectual capital on company performance. For the material flow cost accounting variable, it also has a significant influence on company performance. Apart from that, simultaneously green intellectual capital which consists of green relational intellectual, green structural intellectual, green human intellectual, and material flow cost accounting also has a significant influence on company performance. In signaling theory, it is said that investors are very interested in investing in the energy sector with investors' main assessment being the implementation of factors that support environmental sustainability. This is because the energy sector is a company that has quite a high emission impact on the environment, even though it provides quite large profits when investing in this sector.

The Effect of Material Flow Cost Accounting on Company Sustainability: Moderating Role of Green Accounting in Consumer Goods Industry Companies

This study analyzes the influence of material flow cost accounting in improving company sustainability. Material flow cost accounting. This research uses proxies for production costs, factory area, and output or production value. The population used in this research is all goods and consumption companies listed on the IDX for the 2015-2021 period. Through Purposive sampling, the samples obtained were 6 companies in that period, so 42 data were obtained. Data processing in this research was carried out using multiple regressions and moderated regression methods with an absolute difference value approach. This research concludes that MFCA (production costs) negatively and significantly affects company sustainability. This means that reducing production costs to get higher profits will increase the company's sustainability. Meanwhile, MFCA (factory area and output or production value) positively and significantly influences company sustainability. This shows that the wider the company's area and every time there is an increase in production results, the company's sustainability can increase. Besides, green accounting cannot moderate material flow cost accounting on company sustainability.

Energy, economic, and environmental (3E) assessment of the major greenhouse crops: MFCA-LCA approach.

In order to develop sustainable production of greenhouse crops, the economic, energy, and environmental aspects of production should be considered. The purpose of this study was to evaluate the economic, energy, and environmental (3E) sustainability of cucumber, tomato, and bell pepper production in greenhouses by performing material flow cost accounting (MFCA) and life cycle assessment (LCA) material and methods. Calculating the economic and energy value of losses in agricultural sustainability assessment studies is not common. Using the LCA method alone does not allow us to calculate the monetary and energy value of waste. If this method is used simultaneously with MFCA, this gap will be filled. The system boundary for LCA was from cradle to farm, and for MFCA, foreground processes were considered. The production of each crop was compared at the level of 1000 m2 during 1year. Data were collected through questionnaire-based interviews. The gross value of production for cucumber, tomato, and bell pepper were 8982, 16387, and 17610 $/1000 m2, respectively. The negative production of cucumber, tomato, and bell pepper were 702, 718, and 449 $/1000 m2, respectively. The benefit-to-cost ratio in the production of cucumber, tomato, and bell pepper was calculated as 2.8, 5.17, and 5.8, respectively. The economic productivity in the production of cucumber, tomato, and bell pepper was calculated at 10.25, 7, and 4.4kg/$. Labor cost was the main cost in the production of all three crops. The total input energy for the production of cucumber, tomato, and bell pepper was estimated to be 99.4, 123.1, and 164.6 GJ/1000 m2, respectively. Negative products in the production of cucumber, tomato, and bell pepper were obtained at - 24.2, - 23.9, and - 13.5 GJ/1000 m2, respectively. The energy productivity of cucumber, tomato, and bell pepper was calculated as 0.23, 0.26, and 0.08kg/MJ, respectively. The specific energy indices were 4.32, 3.79, and 12.20MJ/kg for cucumber, tomato, and bell pepper, respectively. The energy ratio in the production of tomato (0.02) was higher than bell pepper (- 0.02) and cucumber (- 0.06). From the perspective of energy, electricity was recognized as the hotspot for the production of three crops. Global warming (GWP100a), ozone layer depletion (ODP), acidification (AC), and eutrophication (EP) indices were calculated for all three crops. Tomato production was ranked first in all impact categories. On-farm emissions and electricity consumption were identified as environmental hotspots. The subsidized price of electricity, natural gas, and chemical fertilizers has led to their excessive use in the production of greenhouse plants. It can be concluded that bell pepper has the best performance from an economic point of view. However, its production is not justified in terms of energy. Tomato was ranked first in terms of energy, and cucumber was ranked first in terms of low environmental impacts. The production of these plants with energy and chemical fertilizer subsidies is currently cost-effective. If the prices are corrected, the production of these plants will face serious challenges. Producing electricity from sunlight and mechanizing production processes can be a solution to these challenges.

Application of Material Flow Cost Accounting Technology to Support Green Productivity and Its Reflection in Achieving Sustainable Development

As material flow cost accounting technology focuses on the most efficient use of resources like energy and materials while minimizing negative environmental effects, the research aims to show how this technology can be applied to promote green productivity and its reflection in attaining sustainable development. In addition to studying sustainability, which helps to reduce environmental impacts and increase green productivity, the research aims to demonstrate the knowledge bases for accounting for the costs of material flow and green productivity. It also studies the technology of accounting for the costs of material flow in achieving sustainable development and the role of green productivity in achieving sustainable development. According to the study, material flow cost accounting technology contributes to green productivity by lowering energy and material consumption, which lowers costs and improves quality during production. This, in turn, leads to higher levels of environmentally friendly, customer-satisfied, and sustainable development productivity.

Material Flow Cost Accounting in Palm Oil: Promoting Transparency in the Use of Materials and Appropriate Scenario in Resource Saving and Waste Reduction

Material Flow Cost Accounting in Palm Oil: Promoting Transparency in the Use of Materials and Appropriate Scenario in Resource Saving and Waste Reduction

Cost Reduction Strategy In Manufacturing Industries Empirical Evidence From Indonesia

The COVID-19 pandemic has forced manufacturing industries to be efficient in multiple fields. This study examines the effect of raw material management using Material Flow Cost Accounting and waste cost for Non-Product Output cost on implementing cost reduction strategies. Data was gathered by analyzing annual financial reports as well as sustainability reports. The study finds that organizations can reach efficiency by managing the cost of the raw materials using Material Flow Cost Accounting and Non-Product Output costs when implementing a cost reduction strategy. The research contributes to developing the concept of cost reduction through the Environmental Management Accounting approach, which is still rare in this field, in addition to the traditional method of cost accounting that organizations have carried out to achieve cost efficiency.

Green Accounting, Material Flow Cost, And Environmental Performance as Predictors of Corporate Sustainability

The main objective of this study is to analyze the effect of implementing green accounting, material flow cost accounting, and environmental performance on corporate sustainability. This study uses stakeholder theory and legitimacy theory. This study uses secondary data obtained by the documentary method. The data source in this study is the annual reports of manufacturing companies listed on the Indonesia Stock Exchange for the period 2018 to 2020. The sample selection was carried out using a purposive sampling method and analyzed using multiple regression analysis. The results of the study show that green accounting has a negative and significant effect on corporate sustainability. MFCA (production costs) has a positive and insignificant effect on corporate sustainability. MFCA (land area of production coverage) has a negative and significant effect on corporate sustainability. MFCA (production value) has a positive and significant effect on corporate sustainability. Environmental performance has a positive and significant effect on corporate sustainability.

Green Accounting Memoderasi Material Flow Cost Accounting terhadap Peningkatan Keberlangsungan Perusahaan

This study aims to test and find out the material flow cost accounting in increasing the sustainability of the company. In addition, this study also aims to test whether the green accounting variable moderates the relationship between each MFCA variable (production costs, and production yield/value) in increasing the sustainability of the company. The sample used in this research is energy companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2022 period. The total sample is 55 out of 11 companies using a purposive sampling technique. Methods of data analysis using multiple regression and moderating regression analysis with the absolute difference value approach. Multiple linear regression analysis for the MFCA hypothesis (production costs, and production yield/value). Multiple linear regression analysis with absolute difference value test for the MFCA hypothesis (production costs, and yield/production value) moderated by green accounting. The results of the study show that MFCA (production costs) has no effect on green accounting. MFCA (Production Results) has a positive effect in increasing the sustainability of the company. The results of research related to moderating variables show that green accounting as a moderating variable strengthens the relationship between MFCA (yield/production value) in increasing company sustainability. Conversely, in the fourth and fifth hypotheses, green accounting weakens the MFCA (production costs) relationship in increasing the sustainability of the company.

Community Service Training on Material Flow Cost Accounting (MFCA) for Micro, Small, and Medium Enterprise (MSME) Entrepreneurs

In the last two decades, concern for environmental issues has become a regulatory concern at the international and national levels. Many methods have been developed to reduce negative impacts on business activities, including Material Flow Cost Accounting (MFCA) technology that shows an increasing trend among companies and Micro, Small, and Medium Enterprises (MSMEs) in developing countries. The benefit of MFCA technology is its superiority in identifying material losses (harmful products) during production. At the same time, this is known at the end of the process in the conventional accounting system. Then by implementing MFCA technology, business people can take initiatives to reduce material losses and achieves resource efficiency. In addition to efforts to reduce material losses, MFCA technology will encourage business-enhancing practices by reducing costs, reducing carbon emissions, and increasing operational efficiency. This Community Service Program aims to provide training on sustainable business principles by applying MFCA technology for MSME Entrepreneurs at Bina Amanah School of Entrepreneur Cordova in South Tangerang, Banten Province. Using the action research method increases participants' knowledge after the MFCA training.

Assessing the Influence of Green Accounting, Material Flow Cost Accounting, and Firm Size on Company Sustainability Performance

The purpose of this research is to investigate the impact that Green Accounting, Material Flow Cost Accounting, and Firm Size on the Corporate Sustainability Performance of Companies in the Primary Consumer Goods Sector that Are Listed on the Indonesian Stock Exchange in the Years 2020-2022. Quantitative methods and secondary data are utilized in this kind of research. In the years 2020-2022, the Indonesian Stock Exchange is home to 66 populations derived from the major consumer products industrial sector. A purposive sample strategy was employed for the sampling process, and there were as many as 43 companies with an observation period of three years. With the assistance of the SPSS version 22 program, the method of analyzing the data that is being utilized is known as Multiple Linear Regression Analysis. According to the findings of this research, Green Accounting has an effect on Corporate Sustainability Performance with a significance value of 0.000 0.05, Material Flow Cost Accounting does not have an effect on Corporate Sustainability Performance given that it has a significance value of 0.719 > 0.05, and Firm Size does have an effect on Corporate Sustainability Performance.

LOSS ANALYSIS IN BREAD PRODUCTION PROCESS USING MATERIAL FLOW COST ACCOUNTING TECHNIQUE

The case study factory manufactures a range of bread and bakery products for distribution in the North of Thailand. Losses from the production process were recently discovered, which besides being lost costs, also impacted the environment. This research is conducted under the concept of Material Flow Cost Accounting (MFCA) to analyze the losses from each process of the case study bread factory. This is to pinpoint where most of the losses occur and suggest methods for future improvement. This research is conducted with the principle of Plan Do Check Action (PDCA). The “Plan” was to determine a target product, which in this case was raisin bread, as it accounted for the largest proportion of production. Subsequently, a study was conducted of the production process, and a scope under the “Do” stage of the procedure was determined. Input and output factors were identified for each Quantity Center (QC) in both physical units and financial units. Subsequently at the “Check” stage, an analysis of costs was conducted for each QC with the MFCA technique. This was divided into positive product, meaning costs generating revenue, and which were manifest in the product, and negative product, which were costs not generating revenue and were losses from each production stage. Finally, at the “Action” stage, negative products were ranked using Pareto diagram to identify and evaluate opportunities for improvement. The research found that the total costs to produce one production lot of raisin bread were 2,935.55 THB, which were divided into materials costs of 2,270.79 THB (77.35%), system costs of 500.30 THB (17.04%) and energy costs of 164.46 THB (5.60%). Overall, negative product was 25.19%, of which negative product in material costs was 19.41%. This negative product was wastage and losses from dough and fillings being deposited in the machinery, and the failure of packaging films when they were being installed in the packing machine. It was also found that negative materials costs arose maximum in the QC of packing. The conclusions from this research are that it has informed about losses arising in the production process and evaluated them in the form of costs, which should help in proposing methods to reduce this wastage in the future.

VALIDATING AN ENVIRONMENTAL MANAGEMENT ACCOUNTING PRACTICES FRAMEWORK FOR THE GREENING OF ZIMBABWEAN GOLDMINING

The impact of gold mining on the environment remains a challenge despite its footprint being less than other mineral mining or farming. Through a comprehensive literature review, a conceptual framework was previously developed based on qualitative propositions to integrate environmental management accounting practices to address the impact of gold mining on the environment and other stakeholders. This work aims to enhance and validate our framework through interviews at mining companies and validate the resultant framework via a focus group at one of the mining companies. Some important findings from the interviews and the focus group are that government should play an active role in encouraging innovation in greening the sector, managing the environment, and providing safe water. The sector should be regulated and monitored; waste should be reduced through EMAPs, including Activity-Based Costing. Participants were less knowledgeable of other EMAPs, such as Material Flow Cost Accounting and Life Cycle Costing. Regarding sustainability, the sector’s negative impacts outweigh its positive contribution through failure to invest in greener technology. Illegal mining has further damaged the image of gold mining. Implications for theory and practice, management and policymakers are considered. Future work will involve case studies in Zimbabwean gold mines.

Pengaruh Penerapan Green Accounting, Material Flow Cost Accounting, dan Environmental Performance terhadap Profitabilitas Perusahaan


 This research was conducted with the aim to determine how the influence of the application of green accounting, material flow cost accounting, and environmental performance by companies in increasing company profitability as measured using return on asset (ROA). This research was conducted using quantitative methods. The research sample is 18 companies in the primary consumption sector (consumer non-cyclicals) listed on the Indonesia Stock Exchange during the 2018 – 2021 period which were selected using a purposive sampling technique. The data in this study is secondary data in the form of the company's annual report, which is obtained through the official website of each company. Data analysis was carried out using SmartPLS 4.0 software The results show that green accounting and environmental performance have a significant positive effect on company profitability, which means that a high level of company concern for the environment will be able to increase company profits every year. Meanwhile, material flow cost accounting has no effect on company profitability because it is estimated that material flow cost accounting has included in environmental disclosures.
 Keywords: green accounting, material flow cost accounting, environtmental performance, return on asset

Forty-Seven Years of Environmental Management Accounting Research: A Bibliometric Analysis

Environmental sustainability is considered as responsible engagement with the environment in order to prevent the depletion or degradation of natural resources and ensure long-term environmental quality. Environmental management accounting (EMA) is a tool that aids in enhancing environmental performance and environmental information management. EMA is a growing topic, but there hasn't been a complete analysis to pull everything together and make sense of it all. By adopting bibliometric review, through performance analysis, and science mapping, our research fills in this research gap. Biblioshiny in R and VOS viewer is used for conducting data analysis. Through an extensive study of 1,075 documents, this study discloses the publication and citation trend, top influential authors, journals, publications, and top productive institutions and countries. The study also identifies topic trends through temporal analysis. Different thematic clusters are identified through bibliographic coupling and Co-occurrence of the author’s keywords (i.e. Social and environmental accounting, Environmental management accounting, Environmental performance, Carbon accounting, Sustainability, and sustainable development, Eco-system services, Environmental disclosure, and corporate social responsibility). Centrality measures are presented to show the impact of the author and keywords. The study concludes with suggestions for future study, and ways forward focusing on Circular economy, green accounting, material flow cost accounting, carbon accounting, sustainability, etc. The study is wholly dependent on the Scopus database, further studies can explore other databases like Web of science, google scholar, and others.

PENGARUH GREEN ACCOUNTING, ENVIRONMENTAL PERFORMANCE, MATERIAL FLOW COST ACCOUNTING (MFCA) DAN ENVIRONMENTAL DISCLOSURE TERHADAP SUSTAINABLE DEVELOPMENT GOALS (SDGS)

The rapid development of the world industry triggers competition between companies to achieve their goals. This competition has an impact on the environment around the company. The purpose of this study was to examine the effect of Green Accounting, Environmental Performance, Material Flow Cost Accounting (MFCA) and Environmental Disclosure on the Sustainable Development Goals (SDGS). The population used is manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2021. The sampling technique used purposive sampling, so that the sample totalled 45 observations (9 companies for 5 years). The analysis tool uses multiple linear regression. The results of the study show that green accounting is able to increase the SDGs, while environmental performance, MFCA has no influence on the SDGs. This research has implications for manufacturers who apply green accounting by incurring environmental costs that will help increase the company's SDGs.

Prioritizing the acid leaching system of spent SmCo magnets through material flow cost accounting and carbon emission analysis

This study aimed to select the most suitable acid solution for leaching samarium cobalt (SmCo) magnets by comparing the leaching efficiency, cost, and carbon emissions of inorganic acids (hydrochloric acid and nitric acid) and organic acids (citric acid). The total leaching efficiency, material flow cost accounting (MFCA), and ISO14064-1 methods were utilized. The findings suggest that nitric acid exhibits the highest overall leaching efficiency with the lowest cost and carbon emissions, making it the most appropriate acid solution for leaching SmCo magnets. Additionally, organic acid (citric acid) leaching resulted in lower environmental friendliness.

Pengaruh Implementasi Green Accounting, Material Flow Cost Accounting Dan Environmental Performance Terhadap Sustainable Development

The role of companies engaged in the plantation industry and palm oil processing has a very important effect on the world, especially Indonesia. The existence of palm oil companies can help the world in increasing food needs, increasing job opportunities, and helping to increase Indonesia's economic growth. The development of palm oil companies is very fast every year, this makes companies have to pay more attention to sustainable development, while maintaining stability to environmental, social and economic practices around the company to be maintained in the midst of increasing company development but there must always be a contribution so that the sustainability of the company is maintained for the future. Therefore, the purpose of this study is to analyze the effect of the application of green accounting, material flow cost accounting and environmental performance on sustainable development in palm oil companies listed on the IDX from 2017-2021. The data collection method uses purposive sampling. There were 15 palm oil companies that met the criteria as a sample, bringing the research data to 72. The technique used in this study is the Structural Equation Model (SEM) analysis technique. The software used is SmartPLS 3. The results showed that green accounting has no effect on sustainable development. MFCA has a positive and significant influence on sustainable development. Meanwhile, environmental performance has no effect on sustainable development

How material flow cost accounting contributes to the SDGs through improving management decision-making

The purpose of this study is to clarify how material flow cost accounting (MFCA) can contribute to the SDGs and indicate how to introduce it into a company. First, we undertake a literature review to examine which SDGs MFCA can potentially contribute to. We then analyse the interplay between MFCA and management decision-making on the SDGs using an MFCA-LCA integrated model. Finally, we discuss how to introduce MFCA into a company to integrate the SDGs into management decision-making with reference to the SDG Compass. The main contributions are as follows: First, we revealed that MFCA could potentially contribute to multiple goals in the SDGs. Second, we clarified that MFCA could integrate the SDGs into actual management decision-making. Third, we suggested appropriate steps for implementation, regarding how managers should introduce MFCA into the management process on the condition that it does not prioritise economic benefit over social and environmental benefits in contributing to the SDGs. Therefore, this study provides evidence that MFCA can contribute to the SDGs by integrating them into management decision-making, and suggests appropriate implementation steps for promoting the pursuance of SDGs in any company.