Material Flow Cost Accounting Of The Environmental Accounting Research

Previous experience with environmental management in industry has shown, there are two disadvantages in existing conventional costing, from the economic point of view, that neither the largest costs block, namely material costs, nor the steadily growing overheads block can be made sufficiently transparent - and, from the ecological point of view, that conventional costing provides no meaningful information regarding environmental damage or possible potential or measures for environmental relief. The material consumption is the principal source of environmental damage, and lead to environmental cost increasing largely. In the search for ways of balancing the interests of environmental relief and of profitability the essential starting points are to be found in the flows of materials and energy that companies and organizations generate. This paper conceives a material-flow-oriented cost accounting system. Soanother accounting approach------material flow cost accounting has beendeveloped.Firstly, this paper introduces the existing environmental cost accounting, points out there are disadvantages in it, and so it needs change. Secondly, it focuses on the material flow cost accounting, presents a description of its basic idea, components and information base. Then, it discusses its accounting including material cost, system cost, and delivery and disposal cost accounting. The accounting produces enormous information. Through the evaluation of this information, the company can make some changes in product design, eco-materials choosing, and clean production in order to obtain environmental achievement and economic profit. Finally, the author designs a case according to these principles, using existing environmental cost accounting method and material flow cost accounting method separately calculate the environmental cost, comparing the results of them, and thispaper draws a conclusion that enterprise can win sustainable development if it uses the latter.In material flow cost accounting, the waste is regarded as "negative product" of the enterprise's manufacture processes to calculate, which is not reflected in existing cost accounting. It can dynamically reveal the consumption state to natural resources value of the waste. The enterprise can obtain an improved in-house transparency and reveal points of departure for economic and ecological oriented modifications to the flows of materials.