Green Environmental Accounting Details

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Environmental Accounting - Environmental Accounting is used as an umbrella to describe various aspects of accounting. The focus of environmental accounting is to assist in making business decisions especially regarding environmental management activities.

Environmental Accounting was created as a result of learning there were limitations of traditional accounting tools with specific reference to environmental costs, impacts and consequences. An example of this would be overhead accounts were utilized as a bucket for many environmental costs prior to the development of environmental account. This caused cost allocations to reflect inaccuracies and thus could not be traced back to a named process or product. Additionally wasted raw materials were also inaccurately accounted for during the production process.

This type of accounting is a set of broad principles providing views into the physical ...