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The Effectiveness Of Material Flow Cost Accounting (Mfca) In Identifying Non-Product Output Costs And Its Impact On Environmental Performance In Paper Manufacturing Companies: A Case Study In Kwa-Zulu Natal

The Journal of Accounting and Management

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Title The Effectiveness Of Material Flow Cost Accounting (Mfca) In Identifying Non-Product Output Costs And Its Impact On Environmental Performance In Paper Manufacturing Companies: A Case Study In Kwa-Zulu Natal
 
Creator DOORASAMY, Mishelle; Durban University of Technology
 
Subject Material Flow Cost Accounting (MFCA), Cleaner Production, Non-product output, Strategic decisions, innovation, sustainability
 
Description This paper analyses the effectiveness of adopting the Material Flow Cost Accounting (MFCA) approach to highlight non-product output costs and assist managers in their strategic decision making processes with regard to implementing cleaner production processes. Manufacturing companies spend large amounts of money investing in end-of-pipe- treatments in order to improve the environmental performance rather than adopting cleaner production technology and techniques. Cleaner production (CP) is perceived by management as a costly strategy that requires innovation with no financial returns to the company in the short-term. Conventional costing systems do not take into consideration the ‘true’ value of non-product outputs. A case study was performed on a paper and pulp manufacturing company in Kwa-Zulu Natal which provides evidence that MFCA technique highlights the value of non-product output costs enabling managers to assess the financial and environmental benefits of adopting CP techniques and technologies.   The scope of this research was limited to the steam production process which generates large amounts of boiler ash containing approximately 20% of unburned coal. It had been concluded that the company should integrate MFCA with the current EMS system to ensure their future sustainability.
 
Publisher The Journal of Accounting and Management
 
Contributor —
 
Date 2015-01-22
 
Type Peer-reviewed Article
 
Format application/pdf
application/pdf
 
Identifier http://journals.univ-danubius.ro/index.php/jam/article/view/2670
 
Source The Journal of Accounting and Management; Vol 4, No 3 (2014): JAM
 
Language en
 
Rights The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.