Consider the following Venn diagram in which each of the 25 dots represents an outcome and
each of the two circles represents an event.
In the above diagram, Event A is considered to have occurred if an experiment's outcome,
represented by one of the dots
Although a significant amount of scrap is directly recycled back into manufacturing processes, a large
amount of scrap must be taken off site that was not considered above:
Approximately 346,400lbs of polycarbonate are recovered from molding the m
environmental cost allocation is shown in Figure 3. In this scenario, toxic waste from product B is being
incorrectly charged to widget A increasing the apparent cost of production of product A while reducing
the apparent cost of production of product B.
Retained earnings consists of revenues, expenses, and dividends. Revenues
increase retained earnings, while expenses and dividends decrease retained
Revenues measure what is earned, most often as the result of providing goods or
services to cust
Figure 2. Demonstration of incorrect cost allocation (adapted from EPA, 1995)
Under the traditional cost accounting system, the toxic waste generated only by Product B is allocated to
both products. Better environmental cost accounting would result in the
(1 r ) n
Table 10: Present Values of the Costs and Benefits 1
The lack of internal incentives. There needs to be a strong motivation to change accounting and
financial practices. In a world where budgetary constraints exist there are incentives to reduce,
rather than increase, costs.
6.0 Additional Information Sour
153kW for 165 hours. Painting and final assembly use 383kW for 25 hours and 30kW for 15 hours
respectively. One kiloWatt-hour costs $0.05.
What is the total cost of this scrap rate using full cost accounting? The table below can help organize and
Balance Sheets present a snapshot of the investing and financing
activities of a firm at a particular moment in time (usually the last day
of the firms fiscal year). The balance sheet presents a summary of
the firms assets, liabilities and s
to find a cleaning solution which is sewerable and does not require disposal as a hazardous
waste. The cost of sewering the 3950 gallons is assumed to be negligible.
In pollution prevention projects which involve substituting a non-hazardous material for
(The actual monies borrowed, or repaid, are neither revenues nor expenses and do not appear
in the financial analysis)
Labor: The equipment requires 1 hour of maintenance per day. This expense (@ $20/hr) has
been included in the operations expenses listed
(rather than adds) that amount in the retained earnings statement. Illustration 2 presents Sierra
Corporation's retained earnings statement.
Illustration 1 Sierra Corporation's retained earnings statement
By monitoring the retained earnings statement, fin
1) Detailed accounting of environmental costs can help support the development and management of
a corporate environmental management system.
The term environmental costs can be used to describe private environmental costs - the costs that
In summary, adjusting journal entries are made at the end of the accounting period to update
the accounts for internal transactions, and to make sure that the financial statements reflect all
the events that occurred during a specific period, thereby ensu
3) Reclassifying some of the economic activities measured in the accounts by identifying activities that
protect against environmental degradation and recognizing the contribution of the waste disposal
services of the environment - this is called reorgani
Financial Accounting Systems
Financial accounts, such as balance sheets and income statements are used to keep track of business
incomes and outflows. These financial reports are for use by persons outside the firm - for example,
lenders or investors. The
MIN(x,y) or MAX(x,y)
x,y can be any variable (possibly a random variable),
expression, or number.
Applications include revenue calculations that might be
limited by either demand or production quantity.
~N( = x, = y)
normal distribution w
each order shortly before it is needed, as long as the sum of the order quantities equals to
the reserved quantity.
Countermeasures to fluctuating prices - High-low pricing can be replaced with every day
low prices (EDLP). Special purchase contracts can
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Because the differences are squared, the units of variance are not the same as the units of the
data. Therefore, the standard deviation is reported as the square root of the variance and the units
then correspond to those of the data set.
Online user interface
To transfer ownership, a form and credit card payment of 25 Euros must be
sent by regular mail to Germany.
Oct 2, 2000
This model can be complicated by the following real-world issues: variable lead times, nonstationary demand, multiple inventory sites, multiple customer classes, and multi-item order fill
When several components are needed to build a system, each co
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deviations ( 2, for example) below that mean. Of course, any minimum order quantities must be
taken into account.
In many industries, the variance in demand is proportional to the variance in the forecasts for that
demand. This relationship even exists in
Be careful about selecting the lowest price service. Here's why.
How transparent is the host?
The willingness of a web host to share information and encourage open discussion is a valuable
indicator of the service quality and an excellent source of inform
attributes in isolation are perceived differently than in the combinations found in a product. It is
difficult for a survey respondent to take a list of attributes and mentally construct the preferred
combinations of them. The task is easier if the respon
Forums and Newsgroups
Without an independent rating organization or other reliable sources of information, on whom can
you rely? Newsgroups, forums, and bulletin boards used by webmasters are perhaps the best
places to look. It may require several days of