Accounting Seminar: Dr Collins Ngwakwe (06/11/2008)

NOTICE OF RESEARCH SEMINAR

Date: Thursday, 6 November 2008
Time: 09h00am – 10h00am
Venue: Leslie Commerce Building, Upper Campus, Room 6.14
Speaker: Dr Collins Ngwakwe

Topic : Justifying Environmental Cost Allocation in a Multiple product Firm: A Case Study.

Abstract:

This paper examines the effect of environmental cost allocation on production cost and the outcome for environmental management decision. It derives from a case study conducted in a multiple product manufacturing firm in Nigeria. Using polluter pays overhead cost allocation (PPOCA); which in this study is referred to as the environmental cost allocation method, the paper contrast overhead allocation between traditional cost allocation method and the PPOCA method. In addition, production cost derived from the traditional method of allocating waste cost is compared with PPOCA method. Result of paired sample t-test show a significant difference between the results of traditional cost allocation and PPOCA. Findings confirm that environmental method of cost allocation disclose more accurate production cost. Findings also show that management is motivated to make pollution prevention decisions if the actual pollution cost is made to reflect in the production cost of the polluting product. It concludes that wrong cost allocation beclouds relevant information and stifle environmental management decisions. The paper highlights the practical significance of objective cost allocation in environmental investment decisions and revenue accruable from it. It also suggests avenue for further research to examine the impact of costing system on environmental investments and corporate survival.

Speaker:

Collins Ngwakwe is a Senior lecturer in the Department of Accounting at the University of Cape Town. Collins received his doctorate degree in Accounting; a Masters degree in Accounting and a Bsc(Honours) degree in Accounting at the Abia State University, Nigeria where he held an academic position in the department of Accounting. He co-ordinated the post graduate programme in the School of Business and served as the Faculty Representative in the Board of Post Graduate College. His research interest is on Environmental Management Accounting (EMA).

For more information, you can contact:

Asia Brey
Administrative Officer
Department of Accounting
Room 4.01, Leslie Commerce Building
University of Cape Town
Private Bag, Rondebosch 7701
Tel: 021-6502257
Fax: 021-6897582
Email: Asia.Brey@uct.ac.za

Posted on 04/11/2008 by Asia Brey