How Much Does it Really Cost to Be Green. The Need for an Environmental CostClassification System

摘要

This study examines the critical issues related to the identification andclassification of environmental expenditures by business organizations. The recently developed EPA environmental cost classification scheme is reviewed and a number of potential shortcomings of that system are identified. This study proposes an alternative environmental cost classification system based on the concepts of Activity Based Costing. This activity based system overcomes many of the potential shortcomings of the EPA system and may be more useful for internal management decision making regarding the nature and extent of environmental expenditures.