Research On Environmental Cost Accounting Based On ABC Method

The coal chemical industries produce and operate, basing on the non-renewable coal as raw material. Pollutant generated during the process of production has a negative effect on the ecological environment to some degree. The problems of environmental pollution such as haze and sand storm occur frequently, which have been influencing people’s daily life severely. Owing to the fact that coal chemical industry is regarded as a highly polluting industry, the government, the region and the public are more and more strict to the environmental requirements of these coal chemical enterprises than before. This leads to an increasing tendency to the environmental investment of these enterprises.With the purpose of pinpointing the environmental cost of the Bao Tai Long company, helping this company to provide some suggestions in terms of environmental cost accounting and letting the high polluting chemicals burden the environmental cost, this dissertation uses ABC methodology to construct an appropriate system, which could be applied into the environmental cost accounting of Bao Tai Long. Firstly, some relative theories of ABC methodology and the environmental accounting cost are explained clearly. Secondly, Bao Tai Long’s technological process of the production operation is analyzed. Then, based on the activity, the environmental cost of the production process, which is likely to make contaminant is identified. Simultaneously, activity cost pool is constructed as well as the various environmental cost is collected. Afterwards, under the circumstance of the resource driver, the environmental cost is distributed into various chemical products and completing the allocation of environmental costs. In addition, on the basis of the constructed accounting system and the application of the ABC methodology, some required measures are provided to the Bao Tai Long company in terms of environmental cost accounting. According to the research on the environmental cost accounting system of Bao Tai Long, it may help this company to check the environmental cost and the product costs more accurately than before, which is beneficial to the government and the enterprise manager, who need to analyze and control the environmental cost. Additionally, the company could understand in which process of productive operation they could reduce the emissions of pollutants and how to reduce the consumption of natural resources. Likewise, this research could be regarded as a guidance to other coal chemical industries in terms of environmental cost accounting.