Material Flow Cost Accounting And Its Application

At present, there is no fundamental change in the mode of economic growth of china which is still mainly relies on high investment of resources to achieve a considerable extent. The economy is facing serious problems including shortage of the resources and environmental pollutions. Enterprise as the basic production units, increase the emphasis on the environmental management and reduce the impact on the environment is also an inevitable trend to survive from the competition. Material flow cost accounting (MFCA) helps Enterprise increase efficiency of resource utilization in processing and makes the waste clear in each process. at the same time, MFCA helps Enterprise reduce the amount of waste generation itself and reduce the material cost and manufacturing expenses through improving technology in order to reduce the pollutant emissions of enterprises to achieve a economic and environmental win-win benefits purpose, and it has also been a successful pilot and promotion in developed countries, which in China is almost a blank stage. Therefore, to enhance and promote its theoretical research and implementation of material flow cost accounting in china is of great significance.This paper uses methods including documentary research, case study and lessons learned. Firstly, the author described the formation and development of material flow cost accounting, the principles and basic theory, and its comparison with the traditional environmental cost accounting; Secondly, the author discussed the specific enterprise application or significant features of MFCA in Japan, Germany, North America and other developed countries; Thirdly, the author describes the introduction of process of the material flow cost accounting in developed countries and take a Japan enterprise for example, and makes a specific analysis of the implementation process of MFCA and the actual effects both of the economic and environment; Finally, taking both the current situation of Chinese enterprises in Environmental cost accounting and the necessity of Chinese enterprises introducing MFCA into account, the author made some suitable countermeasures and suggestions to introduce and prompt MFCA in our country, including that China should establish a Institutional system to incentive Chinese enterprises to put the MFCA into practice; scientific research institutions should support the enterprises with strengthened research Technology; enhance the environmental awareness and social responsibility of the enterprises managers; government should play the leading role in steadily promoting the use of MFCA, China’s national conditions and characteristics of enterprises should be fully considered in the process of promotion of the MFCA.