Study On Environmental Cost Management

The cost management theory has long been conducted in the economic field and rarely involved in natural resources and environmental system. As the environment is getting from bad to worse, it has significantly constrained the strategy of constant economic development. It has never been so urgent to take environment and resources into the research of cost management theory.Environmental cost management is defined as the management cost occurred in the activities of business environmental conservation, based on its environmental conservation goal and request, through such organized and systematic scientific method as forecast, planning, decision, control and evaluation to maximize the effectiveness and efficiency of environmental conservation. It is the feature of business environmental cost management by investing environment cost and acquiring correspondent environmental effect and economic efficiency. The government has passed many compulsory environmental conservation laws and environmental standards, which require business organization, expense the environmental cost within their internal accounting system. Although this is going to create some financial burden, it will benefit the organization in the long run. The organization can still achieve fairly good economic results through scientific cost forecast and decision and using tailored cost management strategy under the condition of being in compliance with the environmental standards set by the government.Environmental cost management is very sophisticate, which involved research across many different fields. The article is written based on wide range of materials referenced from all over the world. Based on the investigation of polluted organization activities in our country, it combines standard regulation with research, utilizes cases, graphs and models to build environmental quality cost and budget into the products and the cost calculation within a product life cycle. The research covers raw material purchase, storage, production, sale, reuse and waste disposal. The article puts together the cost theory from economic and environmental aspects, adopts open-minded research and probing method, focuses on minimizing, de-poisoning, and recycling waste, utilizes environmental conservation techniques, environmental management system and cost-effective analysis. It innovatively expands the application of cost management in environmental reservation activities and is fairly scientific in nature. Because it is still under the experimental stage over the world and the theory is still being explored, more research needs to be done. However, this article will definitely push the study for environmental cost management.