<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Environmental Management Accounting (EMA) is a broader concept of accounting which uses accounting tools and practices to support company-internal management decision making on environmental issues and its impact on company performance. Research on EMA can be divided into two broad categories: theoretical and empirical studies. The theoretical studies based on framework that aim to explain the nature of the relationship between economic and environmental performance and the adoption of Environmental Management Accounting in a business environment. The empirical studies follow two lines of research, instrumental studies aim to empirically test the relationships hypothesized in theoretical studies; descriptive studies are intended to examine the factors that encourage the adoption of EMA. This review paper examined the role of MFCA in identifying non-product output (waste) and its impact on an organisations profitability. Various case studies are examined in this article that demonstrates MFCA to an important environmental management tool to ensure future sustainability of an organisation.</p></abstract>

Environmental Management Accounting (EMA) is a broader concept of accounting which uses accounting tools and practices to support company-internal management decision making on environmental issues and its impact on company performance. Research on EMA can be divided into two broad categories: theoretical and empirical studies. The theoretical studies based on framework that aim to explain the nature of the relationship between economic and environmental performance and the adoption of Environmental Management Accounting in a business environment. The empirical studies follow two lines of research, instrumental studies aim to empirically test the relationships hypothesized in theoretical studies; descriptive studies are intended to examine the factors that encourage the adoption of EMA. This review paper examined the role of MFCA in identifying non-product output (waste) and its impact on an organisations profitability. Various case studies are examined in this article that demonstrates MFCA to an important environmental management tool to ensure future sustainability of an organisation.

Theoretical Developments In Environmental Management Accounting And The Role And Importance Of MFCA

Durban University of Technology, Department of Financial Accounting, Durban, South Africa

Foundations of Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Environmental Management Accounting (EMA) is a broader concept of accounting which uses accounting tools and practices to support company-internal management...

Theoretical Developments In Environmental Management Accounting And The Role And Importance Of MFCA

Published Online: Jan 06, 2016

Page range: 37 - 52

DOI: https://doi.org/10.1515/fman-2015-0024

Keywords
environmental management, material flow cost accounting, economic and environmental performance, sustainability, profitability

© 2015 Faculty of Management, Warsaw University of Technology

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Theoretical Developments In Environmental Management Accounting And The Role And Importance Of MFCA

Published Online: Jan 06, 2016

Page range: 37 - 52

DOI: https://doi.org/10.1515/fman-2015-0024

Keywordsenvironmental management, material flow cost accounting, economic and environmental performance, sustainability, profitability

© 2015 Faculty of Management, Warsaw University of Technology

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
environmental management, material flow cost accounting, economic and environmental performance, sustainability, profitability