AN ASSESSMENT OF COSTING METHODS AND THEIR IMPACT ON SUSTAINABILITY AND ENVIRONMENTAL COMPLIANCE
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Abstract: AN ASSESSMENT OF COSTING METHODS AND THEIR IMPACT ON SUSTAINABILITY AND ENVIRONMENTAL COMPLIANCE
This study assesses the impact of various costing methods on sustainability and environmental compliance in manufacturing companies in Enugu. The objectives are to evaluate the effectiveness of different costing methods, assess their impact on sustainability initiatives, and identify the challenges faced. A survey design was employed, gathering data from 250 environmental managers and cost accountants, derived using Taro Yamane's formula. A case study of a manufacturing company in Enugu provided comprehensive insights. The reliability coefficient score was 0.85. Findings indicate that accurate costing methods, such as activity-based costing and life-cycle costing, significantly enhance sustainability and environmental compliance by providing detailed cost information and facilitating better decision-making. However, challenges such as high implementation costs and lack of regulatory support were noted. Recommendations include providing more training on costing methods, enhancing regulatory frameworks, and integrating costing methods with overall sustainability initiatives to improve environmental performance.
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