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Small business accountants in Southbank identify the different types of environmental costs

Throughout our accounting services, our small business accountants in Southbank handle many different types of environmental costs that businesses are facing. Environment costs refer to the costs incurred by a business that engages in sustainable development practices. Our accountants for small business in Melbourne separate environmental costs into four categories: prevention costs, appraisal costs, internal failure costs and external failure costs.

Prevention Costs
Prevention costs are costs incurred by an organisation to ensure that environmental problems do not arise in the acts of the business. Examples of prevention costs that our Melbourne small business accountants analyse include the establishment of specifications for incoming materials and appropriate training programs.

Appraisal Costs
These are associated with measuring and monitoring the effects of business operations on the environment. These costs ensure that services, processes and products conform to appropriate environmental specifications.

Internal Failure Costs
Our small business accounting services in Melbourne identify internal failure costs as costs that are incurred by an organisation to address problems that have already arisen. Examples include technology changes required, or costs to care for employees as a result of environmental problems.

External Failure Costs
These are incurred by an organisation to address problems that have arisen from an external element, such as fines to a business for excessive pollution creation.

For more information regarding the different types of environmental costs, please contact our small business accountants in Southbank today.