example, energy must be consumed to manufacture products; similarly, material must be consumed as goods are produced. Without energy and material consumption, no goods can be manufactured.22 In the...

example, energy must be consumed to manufacture products; similarly, material must be consumed as goods are produced. Without energy and material consumption, no goods can be manufactured.22 In the management of environmental costs, accountants must analyze the environmental dimensions of investment decisions: In the capital investment area, accountants can help managers by including quality and environmental benefi ts in the analysis. If a proposed project is more energy effi cient or produces less pollution than an alternative, those factors should be included in the analysis. Th e fi nancial data should include any cost savings from lower energy usage. If the company must control pollution, the fi nancial impact should be recognized.23 Other managerial concerns related to environmental costs include managing quality, research and development, and