THE IMPACT OF SUSTAINABILITY INITIATIVES ON COST ACCOUNTING
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Abstract: THE IMPACT OF SUSTAINABILITY INITIATIVES ON COST ACCOUNTING
This research examines the impact of sustainability initiatives on cost accounting practices in manufacturing companies in Port Harcourt. The study's objectives are to analyze how sustainability initiatives influence cost accounting, evaluate their impact on financial performance, and identify the challenges faced during implementation. A survey design was utilized, gathering data from 200 financial managers and sustainability officers, derived using Taro Yamane's formula. A case study of a major manufacturing company in Port Harcourt provided detailed insights. The reliability coefficient score was 0.88. Findings reveal that sustainability initiatives significantly impact cost accounting by incorporating environmental and social costs into financial reporting, thus enhancing transparency and decision-making. However, challenges such as high implementation costs and lack of standardized practices were identified. Recommendations include providing more training on sustainability accounting, developing standardized frameworks, and integrating sustainability initiatives with overall financial management practices to enhance organizational performance and compliance.
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