Which of the Following Statements Is TRUE Regarding Sustainability Accounting

question 3

Multiple Choice

Which of the following statements is TRUE regarding sustainability accounting?

• A)The Global Reporting Initiative (GRI)is a for profit organization established to develop guidelines so that "reporting on economic, environmental and social performance by all organizations is as routine and comparable as financial reporting."
• B)Statutory requirements describe the elements that must be included in reports based on sustainability accounting.
• C)Since 2002 it has been a criminal offence for the Chief Financial Officer to sign off on a report based on sustainability accounting that does not include a section on environmental management.
• D)Corporate Social Responsibility (CSR)is a subset of sustainability accounting.
• E)The trend to sustainability in reporting has emphasized value creation as well as risk mitigation in financial reports and management discussion and analysis of organizations.

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Definitions:

Production Cost Report

A document that summarizes the total cost associated with producing a specific quantity of goods during a specific period.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and manufacturing overhead.

Equivalent Units

A concept in cost accounting that is used to allocate costs to partially completed goods, measured in the amount of finished goods units.

Conversion Costs

The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished goods.