Environmental Management Accounting and Material Flow Cost Accounting in Japan
Katsuhiko Kokubu1 and Michiyasu Nakajima2, (1)Kobe University, Japan; (2)Kansai University, Japan
Environmental accounting practices in Japan have been led by two governmental initiatives: Ministry of the Environment (MOE) and Ministry of Economy, Trade and Industry (METI). In this paper firstly environmental management accounting practices in Japan are examined by some questionnaire surveys. From the results it is found that environmental accounting is still oriented mainly toward external information disclosure, but that the application to internal management has steadily increased. The results also suggest that among many environmental management accounting tools material flow cost accounting (MFCA) is one of the most promising methods. METI published Environmental Management Accounting Workbook in 2002 and explained MFCA with some case studies. In the second part of the paper MFCA practices of Japanese companies are analysed as case studies. In these case studies it was demonstrated that MFCA was an effective tool not only for environmental management but also for cost reduction.
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