22207 Study Guide - Final Guide: Market Power, Management Accounting, Resource Consumption
Document Summary
Accounting for sustainability: role of accounting in documenting sustainability practices. Accountants measure damages and answers questions by applying their skills beyond just measuring profits. Accounting allows for interested stakeholders to better understand the true cost of their actions at both a corporate and individual level. Accounting used to identify and measure environmental costs. Sustainability practices: any pursuit that reduces resources being consumed in performing transactions to achieve an objective. Twin effect of improving environmental preservation + lowering costs. Accountants reflect on st & lt costs/benefits with investments. * management accounting leads to win-win scenarios for organisations, governments and the population they represent as profitability is maximised through cost savings & resource consumption is reduced. Firms don(cid:495)t have to sacrifice profit in order to be sustainable. In the long term, using less resources/smarter has economic benefits. Consider environmental impacts stakeholder reactions lt financial success. *impress customers to a degree that they feel inclined to buy their products.
