PT Pharma Nusantara has been established for decades and is headquartered in Surabaya. The company has carried out a product quality improvement program for the past 5 (five) years ago and managed to reduce the total cost by investing in costs preventive (prevention costs). But a class action lawsuit in 2019 from local community supported by an NGO (non-governmental organization) realize the company that so far they have only focused on improving quality but neglects to pay attention to the impact of the company's operations on the natural environment thus causing environmental damage and harming society. As a sense of social responsibility, the company then decided to implement environmental quality management program in 2020 and has prepared a system accounting information to support the data required for the program. The following is data on costs related to the environment as of the end of 2020.

Cost Description (Rp 000)

1. The use of raw materials for product packaging consisting of bubble wrap and plain cardboard and colors (for customers specified on request). Everything is still non-biodegradable

5,940,000

1. The use of electrical energy for the production process (lighting in the factories, operation of machines and tools, etc.)

1,548.000

1. Toxins resulting from the production process, including from the process cardboard coloring that pollutes waters and air pollution. Currently the new company can calculate the cost based on the amount of the fine to be paid by the company.

729,000

1. Operation of air pollution control devices that can controlling the amount of Volatile Organic Compounds (VOCs) and Hazardous Air Pollutants (HAPs) released into the air and can cause acid rain, carbon emissions and climate change.

1,848,000

1. Measurement of contamination levels to ensure that levels pollution is still below the level permitted by regulation (consisting of the salary costs of the staff who carry out the measurement and analysis as well as the cost of the test equipment used)

580,000

1. Costs incurred to reduce the amount of scrap calculated from research costs for the use of scrap as packaging raw materials

3,600,000

Total operational cost 50.000.000

The company has 2 products, namely Pharma 1 and Pharma 2 with data for 2020 as follows. Note that for convenience, 1 cost pool can consist of different types of costs but have the same cost driver.