Advantages And Disadvantages Of Traditional Accounting

Financial measures in the Triple Bottom Line accounting framework should follow the common financial accounting guidelines, Generally Accepted Accounting Principle’s, and International Financial Reporting Standard’s. The financial measures in the Triple Bottom Line accounting framework however are not under as much scrutiny as the Environmental and Social measures, though there is debate over certain ethical aspects of Financial Accounting as a well. Financial Accounting in a business is usually not changed in a dramatic way, when a company decides to adopt the TBL framework. Some changes that financial records might reflect include an increase in expenses related to environmental or social care, a decrease in expenses that reflect a detriment to the society or environment (i.e. Transportation Expense), a possible increase in revenues as a result of customer support of the adoption of TBL.

According to Epstein and Buhovac, (2014), costing system is a process designed to monitor the costs incurred in a certain business. Costing systems are meant to advise the management on how to choose the most appropriate course of action with cost efficiency and capability. According to Cardinaels and Labro (2009) costing system provides detailed cost information needed by management needs to control current operations with the aim of improving the future. Below are some of the costing systems that are common to many organizations (Epstein & Buhovac, 2014).

3. Using the variable costing method, which of the following costs are assigned to inventory?

(b) Cost of Finished Goods Sitting Idle in the Warehouse: They are able to ship out   finished products effectively.

The concept of eco-efficiency includes environmental impacts and costs as a factor in calculating business efficiency. The WBCSD considers the term eco-efficiency to describe the delivery of competitively priced goods and services that satisfy human needs and enhance the quality of life while progressively reducing ecological impacts and resource intensity throughout the products’ life cycles to a level commensurate with the earth’s estimated carrying capacity.

While the traditional management accounting techniques may have contributed to planning, controlling and decision making processes at the nation state level, the requirements of globalisation in which nation states now compete for survival in the global market rather than state market, has rendered traditional techniques obsolete and therefore calls for the mobilisation of modern techniques of management accounting. It also calls for the service of accountants with modern management accounting techniques for a successful implementation.

Companies that follow these guidelines can charge higher prices, which helps to offset the costs incurred. They also increase customer loyalty and cultivate an image as a responsible company. Employees are happier and more motivated to work at companies that address these growing concerns. Financially, they have a much better chance of attracting capital investments. Finally, environmental and community groups are more likely to support companies that address issues like these.

* Oil price increase every years which is one of the major cost of the company

(TCO 1) The _____ approach of going green is a good example of the firm’s social responsibility in addition to demonstrating the highest degree of environmental sensitivity. (Points : 5)

3. (TCO 2) Overhead costs have been increasing due to all of the following except

Minimizing the use of energy and reducing emissions and waste are issues of importance to which stakeholder?

As time progress every business can find ways to be more efficient and effective. This can be achieved by analyzing each step of the process and find ways to eliminate "waste". "Waste" can be define here as variables of but limited to time, raw materials, employees, steps in the process, and or

The Following involves the analysis of the costing techniques followed by the company along with its Budgeting system. It also involves the Investment appraisal analysis for the given data.

Hence we can Estimated Indirect (overhead) cost per unit is quite different for each product, unlike the traditional costing where indirect costs per unit were the same for all four products. This approach recognizes that product W uses more activity pool resources than product X , product Y and product Z .

It has been become an issue of great concern that the accounting profession must find a common theory in order to address and put the issue at rest. This therefore, has called for the study of this topic under review “the demand for and supply of accounting theories: the market for excuses. As a result of this several questions have been raised. For instance, the question of why accounting theories are predominantly normative has been put forward by this article? Secondly, why no single theory in accounting profession that is generally or widely accepted? It has been argued that the financial accounting theories have been found to be ineffective most especially in the area of impacting accounting practice and policy, though, this has been