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

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The Answer is No set solution to the above questions is anticipated. The following notes were taken from Statement of Management Accounting No. 67, "The Evolution of Accountability—Sustainability Reporting for Accountants," Institute of Management Accountants (2008).

(1) Examples might include the following:
● selection of raw materials, including issues such as impact of extraction and production, availability of supply, and operational impact of use (e.g., hazardous materials)
● creation of all planned waste streams, whether from manufacturing or support services, and their associated internal and external disposal costs
● creation of unplanned waste and by-products, such as emissions into the air and water
● impact of processes and indirect materials being used, on employee health and the workplace
● transportation costs of all types at all levels of both the supply stream and the output (sales and distribution streams)
● impact of design and operation of the organization's products and services on those who buy and use them and third parties.

(2) Examples might include the following opportunities:
● limiting the impact of (mandatory and voluntary) noncompliance, where such results would cause a loss in reputation and brand value
● cost avoidance in areas such as the internal costs of handling and managing toxic materials, hazardous waste, and other supplies
● minimizing healthcare costs through elimination of negative workplace consequences of environmental impacts
● reducing waste levels (scrap, excess by-products, etc.) through implementing quality initiatives, and extending this to reduction in printing costs and other support areas
● reducing (escalating) waste-disposal costs (both external, such as transportation and disposal fees, and internal, such as materials handling labor costs) through recycling initiatives (and including the creation of new business opportunities through using by-products)
● reducing product liability risks (and possible insurance coverage and legal costs) by focusing on environmental impact from the products or services produced, as part of the product-design management process
● reducing indirect costs through capital investments in areas such as waste-water reduction, electrical reduction (lights, motors, controls, improved housekeeping), oil and gas reduction, and others
● implementation of modified working practices, such as allowing employees to work at home (reduces transportation costs), using technology instead of traveling, and creating and transmitting documents electronically to avoid use of paper and power
● facilitating changes through better space utilization and implementation of passive heating and other improved facility-management approaches.

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

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