The Research On Environmental Cost Management Of A Company With The LCC Method

Since the 21st century, enterprises which from many countries have carried out more and more manage activities to control and protect the environment. Because the government uses many environmental regulation policy and tools to control the behavior of the company’s production, which is related with environment, that pose a big pressure on every company. In addition, company tries to taking the investment costs in environmental protection and governance into the environmental cost accounting system to be calculated and control and manage effective environmental cost, which can bring the cost advantage to the enterprise. So, enterprises need to use effective economic means and scientific environmental cost management methods to help improving the level of environmental cost management, to realize sustainable development. Therefore, this article introduces a single company’s successful case on the implementation of environmental cost management, to emphasize the importance and necessity of environmental cost management in enterprise and provide some desirable management experience for other enterprises.Based on the full understanding of research on environment cost management at home and abroad, this article contrasts the research status at home and abroad through three aspects: the meaning and classification of environmental cost, environmental cost management tools and life cycle method. Then, it introduces the environmental regulation theory and the environmental auditing theory in the perspective of external constraint, and three important measures which could realize the cost advantage of environmental management in the perspective of internal, to Show the necessity and importance of environmental cost management. Then, it introduces the traditional enterprise environmental cost allocation method and new method, which is on basis of the source of the cost to allocating costs. And it shows that the new method is more reasonable and scientific, which could Provide accurate information for enterprise to make the right decision to environmental management. This Article selects the case of A company to analyze the present situation and existing problems of environmental cost management in this company. Also, it introduces some measures which are based on life cycle cost method during the production process in company A. and further analyzes its application effect. Finally,it is comes to the conclusion that the later environment cost management of A company provides a great help to itself to strengthen its environmental cost management, and using suitable economic means to improve their environmental cost management level could secure their economic status. At the same time, according to the plan of company A, some measures are proposed to realize the effective environmental cost management, to provide a reference for other enterprises.