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Managerial Control Systems (Take home exam) - Essay Example

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Managerial Control Systems (Take home exam)

to significantly reduce these emissions (p. 81). The choice of approach depends upon the nature of the business, its motivations and objectives, and the environment it functions in. As a result, there is no one best way by which organizations may achieve their carbon emission targets. The advantages to the firm in the second to the fourth approaches are self-evident, in that energy savings which reduce emissions reduce costs, and the positive publicity enhances the firm’s standing among its consumers. The first approach has to do with the trading of emissions certificates, wherein businesses whose operations require higher emissions purchase pollution permits from other firms who do not need theirs. In this manner, firms who reduce their emission levels have no need for their emission certificates, and may sell them to other firms and therefore earn revenue. Answer to Question No. ...
Future-oriented routinely generated information for MCA refers to monetary carbon operational budgeting for short-term decision-making and carbon long-term financial planning long term decision making. Physical carbon accounting (PCA). For PCA, the past oriented routinely generated information includes carbon flow accounting for short-term decision making and carbon capital impact accounting for long-term decision making. The future-oriented routinely generated information for PCA refers to physical carbon budgeting in the short-term and long-term physical carbon planning for the long term. Both MCA and PCA are essentially interrelated. For instance, past-oriented monetary EMA relies on physical information regarding the flow of materials and energy made available by materials flow accounting approaches. On its own, however, past-oriented information is limited. It helps management discern sources of inefficiencies; thereafter, future-oriented information becomes necessary to forecast the future effects of changes adopted at present (Abdel-Kader, 2011, p. 62). As for short-term information, this is useful where financial data is less volatile. When the data is characterised by high volatility, the long-term focus on carbon-related information becomes more suitable and reliable (Rajapakse & Wang, 2004). Answer to Question No. 3 Various factors influence the volume and type of information that an environmental management accounting (EMA) system provides. Among these are the number, type and functions of managers seeking information from the EMA system and the kind of decisions supported by this information. The structure of the organization and the manner in which its units relate to each other ...Show more

Summary

Answer to Question No. 1 Carbon management accounting is the aggregate of ‘the tools, structures, and procedures for managing carbon related information,’ and is a component of sustainability accounting that helps companies make short and long-term decisions concerning environmental concerns such as carbon emissions (Burritt, Schaltegger & Svezdov, 2011, p…
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