Flow cost accounting

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The flow cost accounting is a material and energy flow related cost accounting approach and allows statements to resource efficiency. The aim is to show all material and energy flows occurring in the company. The method was developed from residual material cost accounting in the 1990s with the significant participation of the Institute for Management and Environment and the Institute for Ecological Economic Research. The residual material cost calculation served as the starting point.

Scope, system boundary, evaluation

Flow cost accounting can be used worldwide to evaluate companies. The system boundaries are determined according to the cradle-to-gate principle. Internal material flows are used in the assessment.

Goal and assumptions

The aim of flow cost accounting is an efficient and reduced use of material and energy . This is made possible by the identification and evaluation of improvement measures and eco-efficiency potential. The method is based on the following assumptions: The cost concept of flow costs (sum of material costs, system costs and costs for delivery and disposal) includes all costs that arise in the context of operational value creation . Costs for delivery and disposal are costs for the receipt and delivery of material from or to the outside.

methodology

Starting with the material flow model, a material flow accounting and a system cost accounting are created. 

	1) Materialflussrechnung:
	        a) Materialflussmengenrechnung,
	 	b) Materialflusswerterechnung,
	 	c) Materialflusskostenrechnung.

	2) Systemkostenrechnung: 
          Systemkostenabgrenzung > Systemkostenzuordnung > Systemkostenverrechnung

Result

The information system can be checked for material flow-related consistency. Furthermore, a material flow-related specification of the structures and accounting methods in cost accounting is created and ecological and economic measures can be developed.

Critical appraisal

The process is suitable for companies with high material and energy costs as well as companies with previously inadequate environmental management . The method enables a completely new approach to material costs; this brings with it a high level of practical relevance. Furthermore, there is a high level of agreement with the economic corporate goals.

source

  • E. Günther (2008): Ecology-Oriented Management, Stuttgart 2008, pp. 271 ff.