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The Application of Material Flow Cost Accounting in Waste Reduction

Author

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  • Shaio Yan Huang

    (Department of Accounting and Information Technology, National Chung Cheng University, No.168, Sec. 1, University Rd., Minhsiung, Chiayi 62102, Taiwan)

  • An An Chiu

    (Department of International Business, Feng Chia University, No. 100, Wenhwa Rd., Seatwen, Taichung 40724, Taiwan)

  • Po Chi Chao

    (Department of Accounting and Information Technology, National Chung Cheng University, No.168, Sec. 1, University Rd., Minhsiung, Chiayi 62102, Taiwan)

  • Ni Wang

    (Department of Accounting and Information Technology, National Chung Cheng University, No.168, Sec. 1, University Rd., Minhsiung, Chiayi 62102, Taiwan)

Abstract

Due to the rise in environmental awareness, corporate companies have shifted their focus from an obsession with short-term profits to contemplating long-term strategies to achieve sustainable management. Effective use of resources is the primary indicator of this achievement. Fulfillment of corporate social responsibility and thinking beyond the regulatory aspects of corporate sustainable management are goals that have continually attracted attention worldwide. Material flow cost accounting based on ISO 14051, which was announced by the International Organization for Standardization (ISO), is a tool that can be used to achieve a balance between the environment and economy. We focused on using ISO 14051-based material flow cost accounting as an analytical evaluation tool from the perspectives of finance and accounting personnel. We conducted a case study on a flat-panel parts supplier to determine whether the efficient use of recycled glass could reduce company costs. The primary finding is that the film layer on recycled washed glass tends to be stripped during the production process, causing increased reprocessing costs and thus rendering the cost of renewable cleaning higher than that of reworking. This study revealed that the ISO 14051-based material flow cost accounting analysis constitutes a valuable management tool, thereby facilitating the promotion of sustainable development.

Suggested Citation

  • Shaio Yan Huang & An An Chiu & Po Chi Chao & Ni Wang, 2019. "The Application of Material Flow Cost Accounting in Waste Reduction," Sustainability, MDPI, vol. 11(5), pages 1-27, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1270-:d:209651
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    References listed on IDEAS

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    1. Haider Mahmood & Maham Furqan & Omar Ali Bagais, 2018. "Environmental Accounting of Financial Development and Foreign Investment: Spatial Analyses of East Asia," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    2. Christ, Katherine L. & Burritt, Roger L., 2016. "ISO 14051: A new era for MFCA implementation and research," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 19(1), pages 1-9.
    3. Md. Abdul Kaium Masud & Seong Mi Bae & Jong Dae Kim, 2017. "Analysis of Environmental Accounting and Reporting Practices of Listed Banking Companies in Bangladesh," Sustainability, MDPI, vol. 9(10), pages 1-19, September.
    4. Tang, Christopher S. & Zhou, Sean, 2012. "Research advances in environmentally and socially sustainable operations," European Journal of Operational Research, Elsevier, vol. 223(3), pages 585-594.
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    Cited by:

    1. Jui-Che Tu & Hsieh-Shan Huang, 2019. "Relationship between Green Design and Material Flow Cost Accounting in the Context of Effective Resource Utilization," Sustainability, MDPI, vol. 11(7), pages 1-15, April.
    2. Thuy Thanh Tran & Christian Herzig, 2020. "Material Flow Cost Accounting in Developing Countries: A Systematic Review," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    3. Caitlin Walls & Almy Ruzni Keumala Putri & Gesa Beck, 2023. "Material Flow Cost Accounting as a Resource-Saving Tool for Emerging Recycling Technologies," Clean Technol., MDPI, vol. 5(2), pages 1-23, May.

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    Keywords

    sustainability; ISO14051; material flow cost accounting;
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