A Cost-Of-Quality (COQ) Reporting Format May Be Applicable to Help

question 1

Essay

A Cost-of-Quality (COQ) reporting format may be applicable to help support the sustainability goals of organizations. Indeed, the development of such a reporting framework would likely be viewed as a significant improvement to an organization's management accounting and control system.
Required:
1. Use your knowledge of COQ reporting to speculate on an "environmental assessment" reporting framework. This tool should identify each aspect of the organization's activities that affect the environment, in terms of both living and non-living natural systems (ecosystems), including land, water, and air. (That is, what are some of the environmental impacts that the management accounting system could assess and monitor?)
2. In the past, management accountants focused on a traditional approach to environmental risk management, wherein the focus was on ensuring regulatory compliance (EPA, etc.) in order to minimize fines, penalties, and legal costs). In today's business climate, however, more will likely be expected of the management accountant. What type of opportunities, associated with environmental performance, might the management accountant suggest to management?

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Definitions:

Acute

Describes conditions, diseases, or symptoms that are severe and sudden in onset but typically short-lived.

Process

A series of actions or steps taken in order to achieve a particular end.

Genetic Predisposition

A higher chance of getting a certain disease due to an individual's genetic composition.

Environmental Stress

Physical, chemical, and biological constraints on the productivity and vitality of living organisms due to environmental conditions.