Financial Performance Management: Environmental Management Accounting and Management Accounting Planning Tools

Financial Performance
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Environmental Management Accounting....................................................................................3
PART 2............................................................................................................................................6
Management accounting planning tools use in solving financial problems................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The systematic process of making each and every monetary transaction into systematic
records so that proper analysis can take place in order to determine the area of improvement is
defines as financial performance management (Cescon, Costantini and Grassetti, 2019). A
framework and database that incorporates policies and protocols for preparing staff, tracking,
summarising and communicating specialised sustainability reporting feedback from key people
in the organisation is an environmental management tool. In a perfect future, by defining the
environmental costs added to goods, operations and services, companies will reflect
sustainability impacts in their financial accounts.
This report is divided into two part, the part 1 includes issues faced by businesses in
managing its Environmental costs and the different methods used by businesses in accounting of
its Environmental Costs. In other part, management accounting planning tools in solving
financial problems that may be affecting its financial performance and to gain financial
sustainability is also elaborated.
PART 1
Environmental Management Accounting
Environmental Management Accounting (EMA) is now an initiative to combine the thought and
practise of best quality management with the thought and practise of successful environment
protection. If the financial success of a company is calculated by the profitability of financial and
environmental indicators using various methods such as monitoring and auditing that are
applicable to some organisations, however where environmental strategies such as complete cost
accounting, cost analysis, value evaluation and some well preparation are taken up with regards
to the environment (Saunders and Lewis, 2012).
Environmental costs
Material cost of product output:
Prevention practises was the first move in evaluating and selecting vendors. Another of the
several measures is to calculate and pick emission control equipment. Choosing recycled goods
or using these in the well as well as ordered manner would benefit and environmental impact
auditing will all lead to accounting for environmental sustainability (Johnstone, 2020).
Material cost of NPO: