Question

In 200 words identify and explain the potential costs for a company to produce a social and environment report?

Answer 1

Potential Cost : the cost of goods sold as it should be , and that means the cost of the recipe approved.

Actual Cost : the cost of goods sold as it done , and it can be calculated as following :

Opening Inventory+Direct purchases+Transfers In-Transfers Out-Spoilage-Staff Meals

Social cost in neoclassical economics is the sum of the private costs resulting from a transaction and the costs imposed on the consumers as a consequence of being exposed to the transaction for which they are not compensated or charged.

Environmental costs are costs connected with the actual or potential deterioration of natural assets due to economic activities

Therefore, companies need to record environmental costs in their financial reports. ... Environmental accounting provides important information related to additional costs from environmental issues by rechecking product costs and specific processes that may be hidden in overhead costs, so it can be used to make decisions.

company doesn't work in isolation as it is depended on all its environmental factors

it is influencedc by the society and environmental factors

so cost for hese is also asscertained for every company