Outline four costs that should be reported in an environmental cost report (4 Marks)

Evaluate three benefits that might accrue to an organization that adopts Environmental Management Accounting (EMA) (6marks)

Maslahi Safaris ltd.is a tour company that operates a fleet of more than 300 vehicles. The company has opened 10 branches in the country which are headed by branch managers. The performance of the manager of each branch is evaluated using financial measures. Many of the branch managers are not happy. They believe that there could conflict between good performance and achieving short term profits. They are also unhappy that their profit report includes a share of head office costs and other costs that they cannot control.

Required:

Discuss why non-financial performance measures are important in the service sector (4marks)

Propose with reasons, two non -financial performance measures that Maslahi Safaris ltd, could use to evaluate the performance of branch managers. (2marks)

Explain why and how non-controllable costs should be shown on the profit reports (2marks)