ACC3200 Chapter Notes - Chapter 12: Management Accounting
Management Accounting Chapter 12 Notes
Suppliers
• An organisation may be willing to pay more for supplies that are known to
have reduced adverse impacts on society and the environment.
• However, there may be other incentives for an organisation to work with
suppliers to adopt responsible environmental and social practices
• Sometimes these changes can lead to reductions in cost.
For example
• In the ‘Real life’ at G H Michell:
• Bales of wool transported to the processing plant included high % of waste
material
• Needed be disposed of prior to and during processing.
• Therefore, part of transport cost related to transporting waste material.
• Additional greenhouse emissions were also created by these wasteful transport
and processing activities.
• If supplier could remove the waste material from the wool bales prior to
transport, this might result in lower transport costs for the supplier and lower
processing costs for G H Michell, as well as resulting in reduced environmental
impacts.
• Thus, both costs and environment impacts would be reduced by this change.