16 Jun Accounting Discussion – What is the cost
Question
Accounting Discussion
What is the cost?
Accounting rules consider the direct financial impact on businesses of operations, but these direct impacts do not encompass all of the impacts operations have. The same is the case for inventory costing and cost categorization. Watch the True Cost Accounting video at Lexicon of Sustainability (Links to an external site.)Links to an external site. (https://www.thelexicon.org) and consider if external costs should be included in the automobile production we looked at in this chapter.
What costs do you think should be included as inventory in car production that do not fall in the descriptions we have seen thus far?
For full credit, please post a minimum of three external costs that you believe are not normally accounted for by automobile manufacturing businesses. Be specific, just saying pollution will not suffice. You need to post suggestions as to how each cost might be measured. You must also respond to two other posts with statements regarding how you would account for the costs proposed.
Just saying something is good, bad, or the like is insufficient. You must provide support for all assertions and valuations made.
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