Environmental Life Cycle Costing (ELCC) in the aspect of cost management in the company

Abstract

Purpose-from a methodological point of view, life cycle costing (LCC) is well developed with respect to conventional costs. This paper aims at presenting the concept idea of Environmental Life Cycle Costing. It expresses the continuous study progress in environmental protection as well as accounting. Ecological and balanced understanding have become constituent of present applied management method. Owing to such an approach, one elicits informational base of cost and revenue connected with the product impact on natural and civic environment. Total cost of ELCC becomes supplement of traditional understanding of Environmental Life Cycle Costing. Moreover total cost of ELCC improves LCA technique. It is defined as the total cost of product's life cycle together with environmental costs. Design/Methodology/Approach-the article begins by looking at the driving forces for introducing life cycle costing, environmental life cycle costing, continues by identifying external and internal environmental cost issues, and concludes with supplemental conception. Findings-the literature on the subject is so limited. There is not sufficient to aid in estimation of environmental costs and benefits for a company. This paper may help in structuring the task of using ELCCA and LCC. Originality/Value-there has been increased interest recently in the presenting ELCC. This paper contributes with new outlooks and structures for that work. It offers theoretical and practical help to managers within companies.