Research On Material Flow Cost Accounting Application:Study On Indonesia MRI Bio Fuel Industry

Environmental issues such as global warming and environmental degradation has increasingly drawn the world attention.The environmental aspects are becoming more important for the company's survivability and sustainability.Indonesia MRI Bio Fuel Industry produces ethanol as main product.In Indonesia,most of ethanol companies use molasses as the main material in ethanol production which yields high amount of waste,including carbon dioxide,sludge,and waste water that has a relatively large damage to environment.The conventional cost accounting system of MRI bio fuel Industry has insufficient awareness of environmental factor.Three problems were identified that conventional cost accounting system has irrelevant environmental cost calculation,process cost calculation,and waste cost calculation that makes the management find it hard to track and control these costs.MFCA compensate for the shortcomings of these traditional cost accounting systems and provide useful information for enterprises and expose the cost of these "hidden costs".Material Flow Analysis is used to measure the flow of material in ethanol production.The focus of this study is on material flow analysis and material flow cost accounting applications.The results are based on the main material input of 100 tons simulation data.Found that the distillation produce 62%material loss.Through MFCA calculation it is found the entire process of resource efficiency is only 22.52%.MFCA identified the Indonesian MRI Bio fuel cost structure and "hidden costs" including material loss,waste,etc.and provide these "hidden costs" to make up for the insufficient of traditional cost accounting,make the relevant managers accurately account and control the cost of the environment and help the policy decision making.Finally,environmental report is established according enterprise environmental management status,environmental management goal,and corporate environmental load reduction to carry out this corporate material flow cost environmental disclosure.