ABSTRACT
In 1994, the Institute for Corporate Environmental Management (ICEM) at the University of Houston and Pilko & Associates initiated the Environmental Cost Accounting Benchmarking Project to develop an understanding of environmental cost accounting through a benchmarking study of corporate practices. Health and safety expenditures are also tracked according to business sector, that is upstream, downstream and chemical. Spills, disposal costs, over/under-treating for lube oils, permitting, and waste-water treatment would all be assigned relatively accurate costs. The Mexican companies claim that they face a more regulated environment than US companies in the use of water. The amount and allocation of environmental resources provide an initial indicator of the company's attitude toward environmental stewardship. Ciba-Geigy has identified two uses for environmental cost accounting. The first use is to assign the proper current cost to the correct product, for profit determination and inventory valuation. The second use is to provide management with support for controlling and managing costs.
