On Environmental Cost Accounting of Cement Enterprises

Abstract

Because cement enterprises are featured by heavy pollution and high energy consumption, it is significant to account their environmental cost. Different from traditional cost accounting, this paper, after the analysis of the work flow of cement, adopts activity-based costing to sum up environmental expenses and allot the expenses to the products for the purpose of uncovering the real product cost. With a case study, this paper illustrates the feasibility of activity-based costing, providing the decision makers of cement enterprises with reliable statistics.
Key words: Cement enterprise; Environmental cost accounting; Activity-based costing