On Environmental Cost Accounting Of Cement Enterprise

China is the largest cement producer in the world. Accordingly, the environmental pollution caused by cement industry is astonishing. According to statistics released by environmental protection administrations, the PM emission of cement industry accounts for 15%-20% of that of the nation, and its dust emission occupies 30% of the totality of the national industrial discharge. In addition, cement industry, the CO2 emission per unit of which is higher than that of any other industry and 7.5 times as high as the national average level, is the major source of greenhouse gases. With the environmental problems deteriorating, the environmental legislations reinforced, the cement enterprises are suffering from increasing expenses concerning environmental protection. Therefore it has become urgent that the enterprises check and control the environmental costs so as to make right decisions and coordinate their development with the environmental protection.Environmental costing accounting of cement industry as the research subject, this thesis summarizes the history and status quo of the study of environmental costing both at home and abroad, analyzes the problems of traditional approaches to environmental costing, and suggests the necessity and feasibility of applying activity-based costing which is based on product life circle to the environmental costing in cement industry. This thesis goes on to suggest an environmental costing system which conforms to the features of work flow in the cement industry, the activity-based costing process being described in detail. After a case study of a large-scale cement company in Zhenjiang, this thesis comes to the following conclusions:1) With the activity-based costing, the cement enterprises can separate the environmental costs from indirect costs, associating them to the corresponding activities and accurately allotting the costs to other subjects of costing which are in the form of different products. The underestimation of environmental costs induced by traditional allocation criteria and the consequent inappropriate production decisions is thus avoided.2) Around the cement production process to identify and confirm the job, the job around the center, measuring environmental costs generated by the production process cost drivers reasonably provide a basis for corporate control and management of environmental costs。3)The calculation of unit environmental costs of two types of cement shows that the products differ in their environmental costs, which provides strong support for the cement enterprises to plan their production reasonably.4)Now that environmental capital expenditure accounts for a high proportion of the environmental costs, the cement enterprises should improve the use efficiency of raw materials such as construction material mines and other natural resources.