ACCA · Question 16 · Specialist cost and management accounting techniques
Section B - Case 1: AquaHarvest
AquaHarvest operates a sustainable offshore kelp farm. The company is implementing Environmental Management Accounting (EMA). During the month, AquaHarvest incurred $12,000 in costs for testing the water quality around the farm to ensure compliance with marine regulations, and $8,000 in fines for an accidental fuel spill from one of their boats.
Under the UNDSD (United Nations Division for Sustainable Development) framework for EMA, how should the $12,000 water testing cost be classified?
Answer options:
Waste and emission treatment costs
Prevention and environmental management costs
Material costs of non-product outputs
Processing costs of non-product outputs
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