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Nowadays, due to inadequate resource utilization and a lack of comprehensive accounting procedures, many firms face substantial issues in controlling their environmental and cost-related implications. As the global emphasis on sustainability and resource efficiency grows, there is an increasing need for Material Flow Cost Accounting (MFCA) adoption to meet these concerns. In this case study, a small and medium-scaled enterprise (SME) i.e., Corrugation Packages Industry in Pakistan has been selected. The formation of a corrugation box has been considered to evaluate the process waste based on MFCA analysis. The identified areas with high negative costs and their reasons are also elaborated with proposed MFCA-based solutions. The positive and negative costs of entire process have been further examined by material cost (MC), system cost (SC), energy cost (EC), and waste management cost (WC). By successful implementation of the MFCA, it has been found that an improvement in the total cost of about 11.11% (MC), 29.61% (SC), 9.32% (EC), 92.57% (WC) have been obtained, whereas the enhancement in positive costs of about 9.82% (MC), 31.31% (SC), 9.88% (EC), 95.08% (WC) have been recorded, and reduction in negative costs of about 29.50% (MC), 36.56% (SC), 35.52% (EC), and 69.83% (WC) have been noted. [ABSTRACT FROM AUTHOR]

Research Question: How can a company in the leather industry improve its eco-efficiency? Motivation: In the academic literature, there is a significant number of contributions that address the intersection between accounting and sustainability. However, the number of papers dedicated to education is rather limited. Management accounting is a domain which can broadly contribute to sustainability, as the professionals are collecting, interpreting, and presenting information on a regular basis. Idea: In this paper, we provide an educational case regarding a few eco-efficiency measures in the leather industry. Data: Data are collected from one of the biggest leather goods producers in Romania. Some of the figures were adjusted for confidentiality reasons. Tools: The material flow cost accounting methodology was used to explain the implementation of environmental management accounting in the case company. Contribution: The study improves the literature on educational cases that can be used in teaching environmental management accounting. The described case study is useful both in an online and offline environment.

This paper focuses on the integration of Material Flow Cost Accounting (MFCA) and Life Cycle Assessment (LCA) or Carbon Footprint (CFP), a Carbon Management Accounting (CMA) method that can incentivize firms to reduce carbon. A literature review was conducted to identify the decision-making situations and limitations that MFCA and LCA (CFP) integration models can support. Twenty-one previous literatures were collected and three types of MFCA and LCA (CFP) integration methods were identified: collaborative, product-based partial integration, and process-based partial integration. Next, the collected prior literature was analyzed based on the CMA decision-making framework proposed and some issues were identified. The common challenge of the three existing integrated models is that they can only provide short-term and past-oriented information. It is difficult to provide incentives for carbon reduction because it does not show the relationship between the physical information of carbon emissions and the cost information. It is also difficult to encourage management to make long-term decisions on green procurement, capital investment, environmentally conscious product design, etc. Another common issue is that the use of MFCA tends to focus on the carbon emissions of material losses rather than all the carbon emissions carried by materials, which may impede product development and capital investment with zero or low carbon emissions in mind. This may inhibit product development and capital investment in consideration of zero carbon and low carbon emissions. The quality of LCA (CFP) information to support internal corporate decision-making is still lower than that of MFCA. Finally, another issue is how to share the information from MFCA among supply chains to extend the process-based partially integrated model to the supply chain. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic has forced manufacturing industries to be efficient in multiple fields. This study examines the effect of raw material management using Material Flow Cost Accounting and waste cost for Non-Product Output cost on implementing cost reduction strategies. Data was gathered by analyzing annual financial reports as well as sustainability reports. The study finds that organizations can reach efficiency by managing the cost of the raw materials using Material Flow Cost Accounting and Non-Product Output costs when implementing a cost reduction strategy. The research contributes to developing the concept of cost reduction through the Environmental Management Accounting approach, which is still rare in this field, in addition to the traditional method of cost accounting that organizations have carried out to achieve cost efficiency.

The sustainability aspect of the palm oil business strategy is a significant part of dealing with changes in the future. The rest of the processed products that have not been handled perfectly is a form of material loss that reduces income and environmental sustainability. Even though the company has reported and compiled its responsibilities, the actual productivity of the company is much lower because the amount of hidden waste has not been fully considered. This research involves companies introducing material flow cost accounting in tracing and calculating physical resources and financing. This method helps companies to determine the number of negative and positive products as a basis for evaluation for saving resources and reducing environmental impacts through reducing oil losses and increasing yields. This effort will become a competitive advantage and encourage the ability of business actors to increase revenue and reduce waste. Scenarios of improving the quality of fresh fruit bunches, optimizing the sterilization process, and increasing the amount of pulp are adaptive choices in terms of availability and resource capacity. Dissemination of efforts and successes in improving resource efficiency to stakeholders is vital to increasing the value and sustainability of the palm oil business.

Purpose –This study aims to provide an in-depth review of the application of the material flow cost accounting (MFCA) technique. It also provides a detailed account of how the technique can be applied in soybean oil processing, emphasizing its significance, key components, and potential benefits. Methodology - This paper adopts the literature review approach to explain the impact of applying the MFCA technique to the soybean oil production process. It provides insights into how MFCA can be effectively applied and implemented in this context. It aims to identify and quantify the environmental and economic costs associated with material usage, waste generation and management, and energy consumption. Findings - When applied to soybean oil production, MFCA provides insights into process efficiency, waste reduction opportunities and potential cost savings. It is concluded that applying the MFCA technique to the soybean oil production process will bring about cost reduction, waste reduction and environmental sustainability. Implications – The study’s scope and focus did not include a practical application of the MFCA technique to the soybean oil production process. However, if all the steps discussed in this study are diligently followed, it is believed that the technique can be successfully applied in soybean oil production. Originality – The study provides an original insight into the application of the MFCA technique, which is yet to be done to the best of the researchers’ knowledge.

In the production planning and control field, assessing the performance of a manufacturing system is a multi-dimensional problem in which neglected dimensions may lead to hidden inefficiencies and missed opportunities for gaining a competitive advantage. In this paper, a new data formalization method is proposed to model a manufacturing system by simultaneously considering value creation and technical, economic, and environmental performance. The proposed method combines the principles of Material Flow Analysis and a new data structure that exploits some characteristics of the Multi-layer Stream Mapping and the Enterprise Input-Output methods to obtain a data-driven approach, typical of Industry 4.0. The proposed method can deal with complex systems and allows to consider also non-value-added activities such as transport and inventories. The implementation of the method and its advantages are shown through a numerical example based on a recycled plastic pipeline manufacturing system. The method shows positive synergies and mutual benefits between sustainable production, lean principles, and data-driven approaches and technologies of Industry 4.0. The method improves the alignment of environmental, technical, economic, and value creation information between operational and strategical levels, removing redundancies in data collection, conditioning, and processing activities, thus reducing partial information, hidden risks and opportunities, and inconsistencies. [ABSTRACT FROM AUTHOR]

The sustainability aspect of the palm oil business strategy is a significant part of dealing with changes in the future. The rest of the processed products that have not been handled perfectly is a form of material loss that reduces income and environmental sustainability. Even though the company has reported and compiled its responsibilities, the actual productivity of the company is much lower because the amount of hidden waste has not been fully considered. This research involves companies introducing material flow cost accounting in tracing and calculating physical resources and financing. This method helps companies to determine the number of negative and positive products as a basis for evaluation for saving resources and reducing environmental impacts through reducing oil losses and increasing yields. This effort will become a competitive advantage and encourage the ability of business actors to increase revenue and reduce waste. Scenarios of improving the quality of fresh fruit bunches, optimizing the sterilization process, and increasing the amount of pulp are adaptive choices in terms of availability and resource capacity. Dissemination of efforts and successes in improving resource efficiency to stakeholders is vital to increasing the value and sustainability of the palm oil business. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Financial Studies Journal is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Material Flow Cost Accounting (MFCA) is an environmental management accounting method that allocates costs to material and energy flows through a process, thereby enabling a simultaneous reduction in environmental impacts alongside an improvement in business and economic efficiency. This study illustrates the versatility of MFCA beyond its usual application to existing production and manufacturing processes. In this paper, MFCA is used to assess the financial viability of two emerging recycling technologies, IRETA2 (Development and Evaluation of Recycling Routes to Recover Tantalum from Electronic Waste) and ReComp (Development of an Innovative, Economically and Ecologically Sensible Recycling Method for Metallised ABS and PC/ABS Composite Waste). These two projects differ in their process structure. Whilst IRETA2 is a strictly linear recycling process, ReComp consists of two process streams, split according to the treatment of its two material fractions. For both projects, the lab-scale experimental results were used to develop an MFCA model of the recycling process scaled at each project partner’s facilities. MFCA was utilised to calculate the projects’ overall profit or loss, the impact of the final products’ market conditions and processing rate (in the case of IRETA2), or machinery capacity (for ReComp) on the overall results. The results show that neither IRETA2 nor ReComp are financially viable based on the current output products’ market value and quantity produced. However, through a sensitivity analysis, it is demonstrated that IRETA2 could become financially viable if the processing rate or market conditions were to improve. Additionally, ReComp could become financially viable if there was an increase in machine capacity. Finally, this paper also explores possible implications of MFCA when applied to emerging recycling technologies on EU policy and strategy, particularly those related to the EU Green Deal, such as extended producer responsibility and supply chain acts.

The purpose of this study is to clarify how material flow cost accounting (MFCA) can contribute to the SDGs and indicate how to introduce it into a company. First, we undertake a literature review to examine which SDGs MFCA can potentially contribute to. We then analyse the interplay between MFCA and management decision-making on the SDGs using an MFCA-LCA integrated model. Finally, we discuss how to introduce MFCA into a company to integrate the SDGs into management decision-making with reference to the SDG Compass. The main contributions are as follows: First, we revealed that MFCA could potentially contribute to multiple goals in the SDGs. Second, we clarified that MFCA could integrate the SDGs into actual management decision-making. Third, we suggested appropriate steps for implementation, regarding how managers should introduce MFCA into the management process on the condition that it does not prioritise economic benefit over social and environmental benefits in contributing to the SDGs. Therefore, this study provides evidence that MFCA can contribute to the SDGs by integrating them into management decision-making, and suggests appropriate implementation steps for promoting the pursuance of SDGs in any company. [ABSTRACT FROM AUTHOR]

Material Flow Cost Accounting (MFCA) is an environmental management accounting method that allocates costs to material and energy flows through a process, thereby enabling a simultaneous reduction in environmental impacts alongside an improvement in business and economic efficiency. This study illustrates the versatility of MFCA beyond its usual application to existing production and manufacturing processes. In this paper, MFCA is used to assess the financial viability of two emerging recycling technologies, IRETA2 (Development and Evaluation of Recycling Routes to Recover Tantalum from Electronic Waste) and ReComp (Development of an Innovative, Economically and Ecologically Sensible Recycling Method for Metallised ABS and PC/ABS Composite Waste). These two projects differ in their process structure. Whilst IRETA2 is a strictly linear recycling process, ReComp consists of two process streams, split according to the treatment of its two material fractions. For both projects, the lab-scale experimental results were used to develop an MFCA model of the recycling process scaled at each project partner's facilities. MFCA was utilised to calculate the projects' overall profit or loss, the impact of the final products' market conditions and processing rate (in the case of IRETA2), or machinery capacity (for ReComp) on the overall results. The results show that neither IRETA2 nor ReComp are financially viable based on the current output products' market value and quantity produced. However, through a sensitivity analysis, it is demonstrated that IRETA2 could become financially viable if the processing rate or market conditions were to improve. Additionally, ReComp could become financially viable if there was an increase in machine capacity. Finally, this paper also explores possible implications of MFCA when applied to emerging recycling technologies on EU policy and strategy, particularly those related to the EU Green Deal, such as extended producer responsibility and supply chain acts. [ABSTRACT FROM AUTHOR]

Cloud manufacturing (CMfg) platform offers an open marketplace, where a Resource Service Provider (RSP) can benefit from Price Discrimination (PD) in return for specific services. However, the literature focused mainly on operatorbased pricing and overlooked RSP pricing control. Therefore, this study formulates a profit function in which revenue is enhanced by adjusting prices according to customer types, while cost accounting is done by resource allocation based Material Flow Cost Accounting (MFCA) because MFCA provides a comprehensive guideline towards waste minimization. The proposed model is formulated into MINLP problem with multiple factors such as; part types, batch size, part routes, machine types, energy consumption, worker types and material handling cost as well as price sensitive customer behaviour and demand. Further, ANOVA is applied for factors analysis. The results suggests that customer types and demand are positively correlated, while parts, machines, and worker types are negatively correlated with profit. The model is also compared with reference price effect and fixed pricing strategy. Results validate that to benefit from diverse customer behaviour in CMfg, PD along with optimal resource allocation provides an effective solution for profit maximization. Model is also compared with reference price effect and fixed pricing strategy to validate its effectiveness. [ABSTRACT FROM AUTHOR]

This work analysed the environmental and economic impacts of extracts enriched in ergosterol and vitamin D2 production from bio-residues of Agaricus Bisporus mushrooms. The main hotspots of the extractive processes in environmental terms were identified through the standardized methodology Life Cycle Assessment. In respect to the economic analysis, the Material Flow Cost Accounting approach was applied to identify production costs, distinguishing between valued and wasted costs. The LCA results showed that electricity consumption is a key factor in environmental aspects, having the highest contribution to the process's environmental impact. In general, the most electricity-consuming unit processes analysed were lyophilization, extraction and evaporation. Despite evaporation being a process with great energy consumption, it also mitigates environmental impacts, since it allows solvent recovery through the extraction and reutilization phases in new iterations. The production costs for the identified extracts were determined: extract enriched in ergosterol (2.43€/1 g of extract) and extract enriched in vitamin D2 (8.28€/1 g of extract). Recovered solvent incorporation in posterior iterations resulted in a total cost decrease of about 47% for ergosterol-extract and about 39% for vitamin D2 extract. Solvent's recovery and reutilization allowed to not only reduce the environmental impacts but also the production costs.

Traditional management accounting methods are difficult to provide the necessary information for environmental economic management decisions. In response to the increasingly urgent need for decision-related information, a new branch of accounting, environmental management accounting, has emerged and is receiving increasing attention. Material Flow Cost Accounting (MFCA) is a useful tool for managing complex resource and waste streams. However, MFCA is mainly used for ex-post accounting and reporting and no efforts are made to use it for forecasting. In this study, we introduce MFCA method into the budgeting process of manufacturing firms, and thus construct an MFCA-ABB (Activity-Based Budget) model. This model is applied to JLC Company which is a fragrant liquor manufacturer in China, in order to forecast and plan for its resource consumption, positive product output, and negative product generation. Based on the forecasts of involved material flows, inefficiencies in the company’s liquor production process are identified; scenario analysis is then conducted to determine the optimal process and the technology adopted. The proposed MFCA-ABB model turns a pure operating budget into an environmental-economic budget, thus achieving both environmental and economic benefits for the company. Besides, this study makes an attempt to apply ABB in environmental management accounting, which suggests the possibility of applying the conventional management accounting tools, after modified, to the environmental-economic management of manufacturing firms in the future.

Material flow cost accounting (MFCA) represents an innovative tool to identify inefficiencies in the use of resources in agribusiness, measuring either mass flows or costs incurred along the entire supply chain. The purpose of the article is to estimate the meso-level ecological and economic impacts of food loss and waste in the Italian salty snack sector before and during the COVID-19 lockdown by applying MFCA. Furthermore, in the light of the European Commission Delegated Decision 2019/1597, it aims to assess whether MFCA is a suitable tool to support food waste management along the entire food supply, discussing implications for researchers, academics and managers, as well as for public authorities. The research explores potato chip production from the agricultural stage (either considering plant cultivation and harvest) to the final consumption stage. The functional unit is 1 ton of unpackaged chips produced. The Italian lockdown spurred an intense upsurge in snacking activities (i.e., the consumption of salty snacks), justifying the need to investigate an agri-food segment often overlooked from an economic, resources and waste management perspective. It emerges that the "chips system" generates production valued at EUR 461 million (78%) and costs associated with food loss and waste that exceed EUR 131 million (22%), revealing an economically important potential for savings through a reduction in undesirable negative material flows, or through the valorization of previously hidden material losses according to circular economy paradigms. This suggests that the company-level adoption of appropriate material and financial accounting systems could enhance both internal savings and collective benefits towards sustainable resources and waste management. [ABSTRACT FROM AUTHOR]

VietGreen, headquartered in the South of Vietnam, is a bottled mineral water company striving towards becoming a leading mineral water producer with a strong reputation for social responsibility and integrity. This case describes VietGreen's decision to explore the potential of material flow cost accounting (MFCA) for enhanced eco-efficiency and achieving the company's long-term goals. It introduces the students to the company's major challenges in meeting existing and newly introduced environmental regulations and in dealing with various controversial perspectives of managers involved in a project to implement MFCA. The focal questions of the case are why and how the company's management should invest in and apply MFCA to implement its major strategic objectives. In particular, it focuses on the tension between measures improving either environmental or economic performance as well as the search for solutions contributing to both types of goals. [ABSTRACT FROM AUTHOR]

A novel simulation model incorporating the concept of material flow cost accounting (MFCA) into a numerical process simulator for wastewater treatment plants (WWTPs) was developed. Cost-related parameters, such as electrical power consumption, were calculated for each unit process by referring to predetermined formulas of design rules and technical knowledge built into the model. These calculated values were then assigned to the outflow stream proportional to the flowrate, allowing each flow stream in the WWTP to be quantified according to the history of assigned costs. This method increased the number of quantity centers in MFCA models regardless of actual data availability, thus contributing complex flow configuration and flexible comparison of improvement approaches related to financial evaluation. Energy cost allocation maps created by this model demonstrated the benefits of anaerobic treatment in the WWTP of a soft-drink factory in Japan. Additionally in this WWTP, the observed values of total power consumption were 40% higher than the simulated values, and improvement approaches, such as instrumental control of aeration, were evaluated for their feasibility and financial impact. These results demonstrated the success of the model in adding and reinforcing analytical and predictive functions in the MFCA survey method.

The textiles and garment industry plays an important role in Thailand's economic growth, despite facing competition in product quality and rising production costs. Meeting diverse consumer needs and satisfaction has become increasingly difficult, as environmental issues become a major concern for firms internationally. Entrepreneurs require sophisticated strategic management techniques to maintain organizational productivity. Growing industries generate material losses, while negatively impacting the environment. Companies may account for their waste, but in reality, actual productivity is much lower, since hidden wastes are mostly unaccounted for and unquantified. A key barrier to reducing waste is that potential cost savings by revising waste management processes are not calculated. To solve this problem, material flow cost accounting (MFCA) was introduced to reduce negative product costs in a ladies' lingerie company by identifying and evaluating the quantity and cost of concealed material waste. An effective meta-heuristic called the Two-Dimensional Cutting Stock Problem—Tabu Search algorithm (2DCSP-TS) was then proposed based on the idea of finding a layout that minimized a bin length. The multi-phase arrangement strategy embedded in it can obtain near-optimal conditions for solving realistic-sized problems. To illustrate the effectiveness of the proposed methods, numerical experimental results were compared with those of the current practice. From the numerical experiments, it was found that the proposed technique is an efficient method for reducing negative product costs. [ABSTRACT FROM AUTHOR]

Penelitian ini bertujuan untuk menguji dan mengetahui efek green accounting terhadap material flow cost accounting dalam meningkatkan keberlangsungan perusahaan. Sampel yang digunakan dalam penelitian ini adalah perusahaan pertambangan yang terdaftar di Bursa Efek Indonesia (BEI) selama periode 2015-2017. Total sampel berjumlah 36 dari 4 perusahaan dengan menggunakan teknik purposive sampling. Metode analisis data menggunakan regresi berganda dan analisis regresi moderating dengan pendekatan nilai selisih mutlak. Analisis regresi linear berganda untuk hipotesis MFCA (biaya produksi, luas area pabrik, dan hasil/nilai produksi). Hasil penelitian menunjukkan bahwa MFCA (biaya produksi, dan hasil/nilai produksi) berpengaruh positif dan signifikan terhadap green accounting. MFCA (luas area pabrik) berpengaruh negatif dalam meningkatkan keberlangsungan perusahaan. Hasil penelitian terkait variabel moderating menunjukkan bahwa green accounting sebagai variabel moderating memperkuat hubungan antara MFCA (hasil/nilai produksi) dalam meningkatkan keberlangsungan perusahaan. Sebaliknya, dalam hipotesis keempat dan kelima green accounting melemahkan hubungan MFCA (biaya produksi, luas area pabrik) dalam meningkatkan keberlangsungan perusahaan.

Material flow cost accounting (MFCA) represents an innovative tool to identify inefficiencies in the use of resources in agribusiness, measuring either mass flows or costs incurred along the entire supply chain. The purpose of the article is to estimate the meso-level ecological and economic impacts of food loss and waste in the Italian salty snack sector before and during the COVID-19 lockdown by applying MFCA. Furthermore, in the light of the European Commission Delegated Decision 2019/1597, it aims to assess whether MFCA is a suitable tool to support food waste management along the entire food supply, discussing implications for researchers, academics and managers, as well as for public authorities. The research explores potato chip production from the agricultural stage (either considering plant cultivation and harvest) to the final consumption stage. The functional unit is 1 ton of unpackaged chips produced. The Italian lockdown spurred an intense upsurge in snacking activities (i.e., the consumption of salty snacks), justifying the need to investigate an agri-food segment often overlooked from an economic, resources and waste management perspective. It emerges that the “chips system” generates production valued at EUR 461 million (78%) and costs associated with food loss and waste that exceed EUR 131 million (22%), revealing an economically important potential for savings through a reduction in undesirable negative material flows, or through the valorization of previously hidden material losses according to circular economy paradigms. This suggests that the company-level adoption of appropriate material and financial accounting systems could enhance both internal savings and collective benefits towards sustainable resources and waste management.

Due to underground infrastructure and earthworks, the excavated soil and rock (ESR) emerges as the primary construction and demolition (C&D) waste stream in numerous urban areas. The transportation and disposal of ESR entail substantial costs and adverse environmental impacts, necessitating optimized management approaches. However, the environmental and economic evaluation of various ESR disposal methods remains insufficiently explored. This study presents a comprehensive analysis of a city-scale ESR management system through a case study in Shenzhen. This rapidly expanding megacity generated an annual average of 77 million m3 of ESR. We dynamically evaluate the sustainability of ESR management by harnessing a synergistic methodology that integrates material flow cost accounting (MFCA) with life cycle thinking. The findings reveal that cross-regional transportation emerges as the prioritized ESR disposal method, accounting for 72 ± 2% of the total ESR treatment, resulting in greenhouse gas (GHG) emissions of 584 ± 35 kt CO 2 eq. and economic costs of 8358 ± 64 million USD per year. Scenario analysis reveals that sound recycling routes, accompanied by policy support, can yield environmental and economic benefits by reducing GHG emissions by 574 ± 55 kt CO 2 eq. and generating net profits of 248 ± 15million USD per year in the coming decade. This study exemplifies the complementary methodologies supporting sustainable ESR management in Shenzhen while offering valuable insights for other cities in China and beyond. • MFCA and life cycle thinking methods were integrated to examine ESR management. • The ESR treatment flows and their ecological and economic impacts were assessed. • Scenario analysis was conducted to evaluate the future ESR management plans. • ESR recycling consistently yields optimal environmental and economic advantages. [ABSTRACT FROM AUTHOR]

We develop a material flow cost accounting system for planning efficient and inefficient costs in arbitrary production processes. The basis of this accounting system is a material flow model with waste and rejects as the main factors of material losses, which is used to determine efficient and inefficient material demand at quantity center and product unit level. This production theoretical foundation enables an extension of the known material flow cost accounting system by a cost unit accounting and clarifies the relationships to other cost accounting systems. Finally, we discuss the necessary steps to implement material cost accounting as a marginal cost accounting system to provide relevant information for short-term decisions. Image 1 [ABSTRACT FROM AUTHOR]

From the perspective of material flow cost accounting (MFCA), which treats both material and financial flows within a company, this study proposes a corporate waste decomposition model to investigate the effects of material and financial factors on corporate waste generation. The proposed model decomposes waste into the material loss (waste ratio of raw materials [WRMat]), raw material-to-cost ratio (RtCR; material use efficiency), cost-to-sales ratio (or COGSR), total asset turnover ratio (TATR), leverage, and total equity. As an application, the waste decomposition analysis is performed using the log-mean Divisia index (LMDI) method, and 125 listed firms in 5 Japanese manufacturing sectors from 2010 to 2015 are analyzed. The LMDI results show that the RtCR, the most crucial term in MFCA, had the largest effect on increases in waste generation as of 2015; however, this effect is not so robust among sectors over the years, implying that MFCA is valid mainly for specific companies/sectors or years. Also, corporate environmental burdens (waste and carbon emission) are likely to be correlated negatively with leverage and positively with total equity in the models, implying that the financial and stock markets have an essential role in deciding corporate environmental burdens. • A corporate waste decomposition model is proposed to show the benefits of MFCA. • Waste is divided into a material loss, material-to-cost ratio, and financial items. • A decomposition analysis by LMDI is performed for 125 firms in 5 Japanese sectors. • The impact of RtCR on waste is not robust and MFCA seems valid for specific sectors. • Firm size and leverage are essential in deciding corporate waste and carbon emissions. [ABSTRACT FROM AUTHOR]

Copyright of Ekonomske Ideje i Praksa is the property of Centar za Izdavacku Delatnost Ekonomskog Fakulteta u Beogradu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract Material flow cost accounting analyzes input/output relations of material flows in the production process based on mass balance principles. However, the measured data of a process contains errors representing a mass imbalance in the system such as that of a wastewater treatment plant. Therefore, measured data should be verified before establishing mass balance and, subsequently, material flow cost accounting. Hence, in this work, a novel practical stepwise methodology using data reconciliation technique is introduced to improve the accuracy and certainty of measurements before material flow cost accounting. A full-scale petrochemical wastewater treatment plant was selected to establish this methodology. The presented results of this case study show an error of −3.22% (−35244 t/year) between total input and output streams of wastewater treatment plant demonstrating mass imbalance in the system. However, the overall mass balance could be closed by simultaneously solving the incidence matrix (system of balances). The results revealed that by including data reconciliation into material flow cost accounting, an accurate mass balance can be performed, which is a key element in material flow cost accounting calculations. The comparison results showed a relatively significant difference between material flow cost accounting for reconciled and measured data (unreconciled). The developed approach provides a reliable set of data for implementing material flow cost accounting in the system. Therefore, using this novel stepwise approach will help decision-makers to enhance both financial and environmental performances more confidently and to define appropriate improvement plans. Graphical abstract Image 1 Highlights • Material flow cost accounting was established in a petrochemical wastewater treatment plant. • Mass imbalance was observed between total input and output streams of wastewater treatment plant. • An integrated approach of data reconciliation and material flow cost accounting was introduced. • The integrated approach can yield more accurate and reliable outcomes. • This stepwise methodology can help decision-makers to define appropriate improvement plans. [ABSTRACT FROM AUTHOR]

The textiles and garment industry plays an important role in Thailand’s economic growth, despite facing competition in product quality and rising production costs. Meeting diverse consumer needs and satisfaction has become increasingly difficult, as environmental issues become a major concern for firms internationally. Entrepreneurs require sophisticated strategic management techniques to maintain organizational productivity. Growing industries generate material losses, while negatively impacting the environment. Companies may account for their waste, but in reality, actual productivity is much lower, since hidden wastes are mostly unaccounted for and unquantified. A key barrier to reducing waste is that potential cost savings by revising waste management processes are not calculated. To solve this problem, material flow cost accounting (MFCA) was introduced to reduce negative product costs in a ladies’ lingerie company by identifying and evaluating the quantity and cost of concealed material waste. An effective meta-heuristic called the Two-Dimensional Cutting Stock Problem—Tabu Search algorithm (2DCSP-TS) was then proposed based on the idea of finding a layout that minimized a bin length. The multi-phase arrangement strategy embedded in it can obtain near-optimal conditions for solving realistic-sized problems. To illustrate the effectiveness of the proposed methods, numerical experimental results were compared with those of the current practice. From the numerical experiments, it was found that the proposed technique is an efficient method for reducing negative product costs.

Material flow cost accounting (MFCA) is a tool designed to encourage eco-efficiency in organizations by focusing on a reduction in use of materials and related improvements in economic performance of corporations. It provides a way to identify win–win situations where monetary and environmental performance can both be improved. But take-up by business is slow, which seems to go against the notion of strong competition driving economic performance. A recent standard, ISO 14051, has been produced by the International Organization for Standardization, and could bring substantial change to MFCA implementation and research. Drawing on Rogers (2003) theory of diffusion of innovation, and with a focus on the first two stages of the innovation-decision process, knowledge and persuasion, this study sought to analyze MFCA and predict how the 2011 release of ISO 14051 might be expected to influence take-up of MFCA by business, and what this might mean for future research. The analysis revealed that, when combined with ISO involvement, MFCA is well placed in terms of Rogers’ theory, with the future likely to see increased diffusion of MFCA and, as adoption rates increase, more opportunities for research in this area. Specific areas identified as a result of the analysis include: the introduction of new research methods, the need for theoretically informed research, and the potential to address new research questions previously considered impractical.