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Theoretical Framework for Material Flow Cost Accounting Master

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Theoretical Framework for Material Flow Cost Accounting Master Theoretical framework for Material Flow Cost Accounting Master Thesis to confer the academic degree of Master of Science In the Master’s Program General Management Author Anzinger Verena, BSc. Student Number and enrolment number 1055396, 973 Submission Johannes Kepler University Linz, Institute for Environmental Management in Companies and Regions Thesis Supervisor a. Univ. Prof. Dr. Heinz Karl Prammer Assistant Supervisor Univ.- Ass.in Mag.a Dr.in Daniela Schrack Linz, March 2016 Declaration I hereby declare under oath that the submitted Master's degree thesis has been written solely by me without any third-party assistance, information other than provided sources or aids have not been used and those used have been fully documented. Sources for literal, paraphrased and cited quotes have been accurately credited. The submitted document here present is identical to the electronically submitted text document. .................................................... ..................................................... Place, Date Signature II Table of Contents 1 Introduction ...................................................................................................................1 1.1 Research problem ................................................................................................... 1 1.2 Research question and objectives ........................................................................... 3 1.3 Method and structure .............................................................................................. 3 2 Sustainability and resource efficiency ........................................................................6 2.1 Idea and importance of sustainability ...................................................................... 6 2.2 Management strategies for critical ecological sustainability ..................................... 7 2.3 Resource efficiency ................................................................................................. 9 2.3.1 Reasons for resource conservation .................................................................. 9 2.3.2 Resource efficiency at a macroeconomic level ................................................12 2.3.3 Material efficiency at a microeconomic level ....................................................14 2.3.4 Increase in efficiency – development and measures .......................................15 2.3.5 Material management......................................................................................18 3 Material flow cost accounting .................................................................................... 21 3.1 History and basic idea ............................................................................................21 3.1.1 Historical background and development ..........................................................21 3.1.2 Description of MFCA .......................................................................................23 3.2 Goals and principles ...............................................................................................24 3.2.1 Goals ..............................................................................................................24 3.2.2 Principles ........................................................................................................26 3.3 Key elements of MFCA ..........................................................................................26 3.4 Implementation of MFCA according to PDCA cycle ................................................28 3.4.1 Plan .................................................................................................................29 3.4.2 Do ...................................................................................................................30 3.4.3 Check ..............................................................................................................30 3.4.4 Act ...................................................................................................................31 3.5 Fields of application................................................................................................31 3.6 Benefits and selected limits ....................................................................................32 3.6.1 Benefits ...........................................................................................................32 III 3.6.2 Limits ..............................................................................................................32 4 Delimitation of MFCA to existing cost accounting and selected EMA approaches 35 4.1 MFCA and traditional cost accounting ....................................................................35 4.1.1 Aims and purpose of traditional cost accounting ..............................................35 4.1.2 Cost accounting principles ..............................................................................37 4.1.3 Criticism of traditional cost accounting approaches .........................................40 4.1.4 Similarities and differences between MFCA and traditional cost accounting ....41 4.2 Delimitation to other (environmental) management accounting approaches ...........44 4.2.1 Process cost accounting .................................................................................44 4.2.2 Activity-based costing......................................................................................49 4.2.3 Life cycle costing .............................................................................................52 4.2.4 Balanced scorecard ........................................................................................56 4.2.5 Comparison and delimitation of selected EMA’s to MFCA ...............................60 5 Selected business theories in relation to environmental economic theories ......... 67 5.1 Economic theories ..................................................................................................68 5.1.1 Ecological modernization theory ......................................................................68 5.1.2 Resource dependence theory .........................................................................73 5.1.3 Systems theory ...............................................................................................78 5.1.4 Resource based view ......................................................................................82 5.1.5 Transaction cost theory ...................................................................................86 5.2 Investigation of theory basis of selected EMA approaches .....................................91 5.2.1 Process cost accounting .................................................................................91 5.2.2 Activity based costing ......................................................................................92 5.2.3 Life cycle costing .............................................................................................95 5.2.4 Balanced Scorecard ........................................................................................96 5.2.5 Theory basis of selected (environmental) management approaches ...............98 5.3 Assessment of selected economic theories in regard to MFCA ..............................99 6 Conclusion and future outlook ................................................................................. 105 7 References ................................................................................................................. 108 IV II Table of Figures Figure 1: Main elements of Master Thesis ............................................................................. 4 Figure 2: Development of DMC of Europe ............................................................................12 Figure 3: Cost structure ........................................................................................................15 Figure 4: Material efficiency in Austria ..................................................................................16 Figure 5: Integrated material management ...........................................................................20 Figure 6: Main goals of MFCA ..............................................................................................26 Figure 7: Presentation of material balance ..........................................................................27 Figure 8: PDCA cycle ...........................................................................................................29 Figure 9: Overview total life cycle costs and revenues .........................................................54 Figure 10: Illustration of systems theory ...............................................................................80 Figure 11: Transaction cost theory .......................................................................................88 Figure 12: Theory basis of ABC and process cost accounting ..............................................93 Figure 13: Connection between the theories and approaches .............................................94 Figure 14: Theoretical origin of Balanced Scorecard ...........................................................98 III Table of Tables Table 1: Efficiency measures................................................................................................13 Table 2: Classification of cost accounting .............................................................................36
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