Study On The Environmental Cost Accounting Of Enterprise Based On MFCA

Manufacturing enterprises play an important role in the high-speed economicdevelopment, the development of economy still relies on high input of resources to achievethe economic growth in a large extent, and the result is that the resource output rate isrelatively low and environmental pollution problems have become increasingly serious. So,in the background of sustainable economic development, the problem is not easily resolvedfor the resource enterprises that how to protect environment, reduce the resource losses andcheck the enterprise environment cost correctly.In the traditional cost accounting, only the depreciation of equipment and thepollution discharge fee is involved in the environment cost, but the environment costresulting from resource loss in the production process is neglected. The paper is based onthe enterprise environment cost accounting of MFCA. By using this method, the enterprisecould know that the environmental cost, which is caused by negative products(loss) in theprocess of enterprise production. That the main purpose of the accounting results is to helpenterprise managers to find the link of the improvement in the enterprise resource loss, soas to improve the utilization rate of resources and protect the environment. Researchmethods used in this paper are literature research, field research method and case analysismethod.This paper is divided into the following four parts:The first part is the literature review. It is about the concept and the classification ofenvironmental costs and the related current research situation of MFCA (Material FlowCost Accounting). Through the literature research, the method was summarized about theconcept and classification of environment cost in practical operation for this paper.Then the second part is to build a model of environmental cost accounting which isbased on the material flowing cost accounting. The MFCA method is based on the theoryof material balance for its accounting basis. In fact, it is accounted the loss of materialflowing in production process. Through the analysis of the data loss, the enterprise could know that the key of the resources loss which is to update its production process andenhance the benefit of the economic and environmental protection in the future.The third part is the case study. The method of MFCA is used in the enterprise case torealize the combination of theory and practical application. So as to obtain the researchconclusion, this paper selects the rare earth enterprise Baotou JM as the case study object,uses the method of MFCA to account the environmental costs with the survey data of theenterprise and analyses the result of the case enterprise.At the same time, the furtherresearch direction can be seen on the basis of the research conclusion.The fourth part is the conclusion of this paper. It can accurately find the key point ofthe loss of resources by using the application of MFCA model of enterprise environmentalcost accounting, and it can improve the process and production, and the economicefficiency of enterprises, so as to achieve the purpose of protecting environment.