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MASTER OF BUSINESS LEADERSHIP

UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP
2010/0/0605-X/MBL3

MBL93FW
ADVANCED FINANCIAL SYSTEMS

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MODULE OVERVIEW
STUDY SCHOOLS
PRESCRIBED BOOKS
CASE STUDIES
ARTICLES
WEB LINKS
ASSESSMENT
TOPICS

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Maintaining the status quo is a very different objective from that of continuous improvement. Functional-based responsibility accounting systems focus on organisational units such as departments and plants. where products and processes are constantly being redesigned and improved are forced to re-evaluate how they do things. Thus. Now.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 MBL93FW ADVANCED FINANCIAL SYSTEMS Page 1 MODULE OVERVIEW 1. focus on processes. Activity-based responsibility accounting adds a process perspective. the performance measures become an integrated set of measures linked to an organisation’s mission and strategy. use financial outcome measures and static standards and benchmarks to evaluate performance. Management accounting offers three types of responsibility accounting system: functional based. Firms that operate in a stable environment with standardised products and processes and low competitive pressures will most likely find the less complex functional-based responsibility accounting systems to be adequate. Activity-based responsibility accounting systems. stable growth and the continuation of efficient production. As organisational complexity increases and the competitive environment become more dynamic. the activity and strategy-based responsibility systems are likely to be more suitable. Customer and learning and growth perspectives are added. Also. preservation of market share. and emphasise and support continuous improvement. The goal is to find management policies and organisational structures that help resolve system challenges. it is clear that the control system selected is contingent on the environment in which the firm operates. Firms operating in a rapidly changing environment.1 STRATEGIC MANAGEMENT ACCOUNTING The kind of environment in which a firm operates can have a significant effect on the type of control and communication system chosen and implemented. A successful firm operating in a stable environment would tend to emphasise the maintenance of the status quo.2 SYSTEMS THEORY AND DYNAMICS System dynamics is a method used to gain insight into situations of dynamic complexity. use both operational and financial measures and dynamic standards. and emphasise the status quo and organisational stability. Improving performance translates into constantly searching for ways to eliminate waste. 1. strategic-based responsibility accounting expands the number of responsibility dimensions from two to four. and is increasingly being used to design more successful policies in companies. in contrast. Thus. activity-based and strategic-based systems. 2 . the control system for firms operating in a stable environment should be different from the control system for those firms operating in a continuous improvement environment.

design. The external failure category is divided into realised and unrealised costs. The feedback structure of systems will be mapped by sketching causal diagrams to capture the feedback that is recognisable. and most real-world examples represent a small set of basic patterns or modes of behaviour. 1. internal failure and external failure. detection. but paid for by society. review and recommend systems that integrate the environmental impact into the organisation’s overall strategy. 2 STUDY SCHOOL Topic number 1 2 3 4 5 6 7 3 Topic description Strategic planning. Managerial accounting: International student edition. South Western: Thomson 3 . exponential decay and equilibrium. There are four categories of environmental costs: prevention. Eco-efficiency implies that cost reductions can be achieved by increasing environmental performance.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 The feedback structure of a system generates its behaviour. Linear first-order systems exhibit three behaviours. and unrealised or societal costs are caused by the firm. more particularly. systems theory and its application to the strategic planning process Strategic management accounting. Examples will show that understanding these dynamics can yield insight into important problems. Non-linear first-order systems can exhibit s-shaped growth. because the dominant feedback loops shift as the system evolves. as environmental costs are a significant percentage of total operating costs. Reporting environmental costs by category reveals their importance and shows the opportunity for reducing environmental costs by improving environmental performance. 2007. MM. Environmental costs are those costs incurred because poor environmental quality exists or may exist. and activity and strategic-based environmental control PRESCRIBED BOOKS Hansen. This course will integrate the above so that by using ”System theory and dynamics” students will be able to design.3 ENVIRONMENTAL COST MANAGEMENT Increasing compliance costs and the emergence of eco-efficiency have intensified the interest in environmental costing. review and recommend strategic financial systems in the area of ”Strategic management accounting” and. DR& Mowen. You will appreciate that first-order linear systems are the building blocks on which all models are built and from which more complex dynamics emerge. reporting and control of cost of quality Using the balanced scorecard as a strategic management system Triple bottom line reporting and the implications for environmental risk management The life cycle assessment model. 8th edition. information that creates value for the 21st century Strategic management accounting for activity decisions Continuous improvement through measuring. Realised costs are those external costs the firm has to pay. The stock and flow concept is introduced to identify the states of the system upon which decisions and actions are based. These are exponential growth.

Brien N. Ackoff. 4 CASE STUDIES No case studies. 5th edition New York: Pearson Prentice Hall. Stuart A.M. 2002).sas. Ludwig Von Bertalanffy. PART 2: HANSEN AND MOWEN 100 marks (i) Case 4-26. Cybernetics and Systems: An International Journal 30:79-103.5 space Arial font 12) that integrates the “readings” and the “success story”.1 INDIVIDUAL ASSIGNMENT 1 PART 1: INTERNET EXERCISE DUE DATE: 06/05/2011 (50 MARKS) A consulting company that provides software and services relating to business intelligence and analytics includes a library of customer success stories on its website at http://www. Daniel F. IN Journal of Leadership and Organisational Studies 10(4). (New York: Wiley-Interscience. 2007. Smith. Bloemfontein. The Origins and Purposes of Several Traditions in Systems Theory and Cybernetics. Umpleby & Eric B. University of the Free State. Management Science.com/index. by also drawing from your information gained from the “Readings” in Young (5 th edition). Towards a System of Systems Concepts. Transformational and Servant Leadership: Content and Contextual Comparisons. PO Box 339. Management Science 17(11). 1999. 9300. 1972). Kenneth E. (ISSS) held in Shangai (August 2 – August 6. July 1971. Trends in General Systems Theory. Boulding. Dent. The Academy of Management Review 5(2) (April 1980):175-187. Russell L. Tatiana N. WEB LINKS No web links. Vol 3 (April 1956):197-208.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 Young. click on the “financial intelligence/activity-based management” link. Readings in management accounting. 5        6 ARTICLES The History and Status of General Systems Theory.html. Harold Koontz. Montagno. Ray V. 7 ASSESSMENT 7.” Thereafter. Select the link. Then. page 161 Requirement 1: Requirement 2: Requirement 3: 10 marks 10 marks 10 marks 4 . SM. “more customer success” and then “customers by solution. Muncie. write a brief paper (3pp 1. General Systems Theory – The Skeleton of Science. The Management Theory Jungle Revisited. This article is a revised version of a paper presented at the Forty-Seventh Meeting of the International Society for the Systems Scientists. Kuzmenko and Ball State University. The scope and limitations of Von Bertalanffy’s systems theory. Strauss.

MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 (ii) Exercise 7-32. 7. EVA and environmental costing in order to contribute to the effective functioning of the financial sector of organisations at an advanced level.2 INDIVIDUAL ASSIGNMENT 2 DUE DATE: 05/08/2011 Cybercase 17–22. Requirement 1: Requirement 2: Requirement 3 .3     Critical questions What is a system? Explain feedback as a method of controlling a system? What is chaos theory? Explain the concept of "useless systems". pages 308 & 309. page 815. Your report must be a minimum of ten (10) pages. excluding appendixes. pages 718 & 719. 5 .2 Specific outcomes Apply systems theory in the development of advanced financial systems that will support the strategic planning process of any organisation. BSC. Please refer to the websites indicated in the question for three sources of both types of environmental disclosure.1 STRATEGIC PLANNING.1 Tuition period Time allocation: Before study school 1. Hansen and Mowen Is environmental reporting a form of signalling? Does it follow that those firms that voluntarily disclose environmental information are superior performers whereas those who don’t are not superior performers? This assignment requires you to compare the economic performance of firms with environmental disclosure with those that have no disclosure. This module is also a practical guide to the way in which the appropriate use of advanced financial systems can add value to the overall corporate strategy used by an organisation. 8. 8.1. Requirement 4: 10 marks 10 marks 10 marks 10 marks Show all your calculations. Requirement 1: Requirement 2: Requirement 3: 10 marks 10 marks 10 marks 7.1.1. for example. 8 TOPICS 8. You can refer to sources from South Africa as well as the European Union. with 1.3 EXAMINATION STRUCTURE This course equips students with a sound theoretical and practical knowledge of the major aspects of advanced financial systems. (iii) Case 15-32. SYSTEMS THEORY AND ITS APPLICATION TO THE STRATEGIC PLANNING PROCESS 8.5 spacing and Arial font 12.

7 Conclusion Adaptive organisations will soon motivate employees to adapt and grow to share fairly the wealth that innovation creates. Feedback means that information from downstream in the process is fed back upstream.1. systems contain three properties: elements. The concern for excellence will be based upon getting things done on time. Attributes are the perceived characteristics of the elements. Also. Can the behaviour of the system be predicted on the basis of the behaviour of its elements? Can the impact of interventions in systems result in predictable behaviour? 8. One common way to present how things work is with a graphical model.1. and doing what the company knows best.1 Tuition period Time allocation: Before study school 1. 8. Measure the output and compare it with the desired output values. using hands-on management.2 STRATEGIC MANAGEMENT ACCOUNTING. 8.1.   Adjust the input values to correct the output. INFORMATION THAT CREATES VALUE FOR E 21ST CENTURY 8. but also a greater system.2. attributes and relationships. and I believe that organisations need to take into account that their decisions affect not only their organisation. Elements are the things that make up the system of interest.4 Learning through activities Please provide examples of the following "process control":   Take a simple input-output model.2 Specific outcomes 6 .1. Systems theory suggests that you model natural and human-made phenomena as a set of interrelated components that work together to accomplish some kind of process. 8. The fact that their ancestors once worked at the same job in the same way for an entire lifetime will seem almost as incredible as the fact that people used to stay at jobs that they didn't thoroughly enjoy. Adaptive organisations eventually replace dynamic and static organisations in economic competition so that within a generation most people will have learnt to expect continual improvement in their life experience. where change in one area may have many effects elsewhere. Systems or models are also generalisations about reality. Systems are used by humans in everyday life to describe the operation of a number of diverse phenomena. Think of a business organisation as having "a mind of its own". Discuss. we need to think of a business as a highly connected system. Within their defined boundaries.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 8. staying close to the customer.2.5    Self-assessment An organisation is neither open nor closed. 8. large connected systems manifest complex non-linear behaviour. Ultimately. Relationships are descriptions of how the various elements (and their attributes) work together to carry out some kind of process.6 Reflection Scientists use systems theory to understand how things work. We need a more holistic view of what the financial world could be. Systems tend to have similarities in the way they work.

new methodology – even what may be called new economic philosophy rapidly taking shape. the lineaments of the new manufacturing accounting are becoming clearer everyday" (Drucker. page 3 section 1. total quality management and time-based competition. is the realm of strategic management accounting. This cross-functional perspective. 8.2.2.3. 1990. or both. May-June: 94). And while there is enormous controversy over specifics.6 Reflection "The most exciting and innovative work in management accounting today is found in accounting theory.3. page 97 8.4 Learning through activities Please read chapters 1 & 2 of the textbook by Hansen and Mowen (2007). PE. 8.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 Understand strategic management accounting and its importance to strategy formulation.2. 8.3     Critical questions How do international issues affect the role of the management accountant? What is the current focus of management accounting? What is the cross-functional perspective in management accounting? Should a management information system provide both financial and non-financial information? 8. management accounting must provide information that allows managers to focus on customer value. which when harnessed together allow the adoption of appropriate strategies to maintain cost leadership whilst keeping the organisation's impact on the environment within the minimum standards. 8.2 Specific outcomes 7 .2. Thus. Harvard Business Review. This allows managers to decide on the strategic positioning of the company. and its management. The emerging theory of manufacturing. page 9 section 5.5 Self-assessment Answer the ‘Exercises 1-1 & 1-2’ on page 24 of Hansen and Mowen (2007).3.2. Providing high-quality parts on a timely basis to managers of production departments is just as vital for the purchasing department as it is for the company as a whole.1 Tuition period Time allocation: Before study school 1.3. 8. with new concepts.2. which will be cost leadership or product differentiation. This implies that information about value-chain activities and customer sacrifice (such as post purchase costs) must be collected and made available. Also read from Young (2007):    section 1. Included are strategic cost management and strategic environmental management.7 Conclusion Increasing customer value to create a sustainable competitive advantage is achieved through a judicious selection of strategies.3 STRATEGIC MANAGEMENT ACCOUNTING INFORMATION FOR ACTIVITY DECISIONS 8.

1.3. page 78 8.3. page 67 section 4. page 31 section 3. 8.5 Self-assessment Work through the scenario on page 117 and then answer the "Questions to think about" on the same page. and the cost of serving the customers can affect pricing decisions.4.1.3. manufacturing and customer service are examples of processes. 8. Activity-based costing can be used to trace costs to specific customers.4. Flexibility and rapidity will become primary objects for accounting measurement.6 Reflection Activity-based responsibility accounting In a continuous improvement environment. Activity-based supplier costing uses activity-based costing to identify the true costs of suppliers.4 Learning through activities Review the following chapters in Hansen and Mowen (2007):  chapters 3 and 4 From Young.3 Critical questions Activity-based responsibility accounting    How does activity-based responsibility accounting differ from functional-based responsibility accounting? What are the three methods of changing the way things are done? When should a firm adopt an ABC system? 8.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 Understand activity-based responsibility accounting and its importance to strategy formulation. 8.4 CONTINUOUS IMPROVEMENT THROUGH MEASURING. Procurement. and because they are the key to achieving an organisation's financial objectives.7 Conclusion Uncertainty in the company environment will increase and rapid changes will emerge all the time. 8. REPORTING AND CONTROL OF COST OF QUALITY 8 . Creating this continuous growth and improvement requires an organisation to constantly improve its capability of delivering value to customers and shareholders. Processes are chosen as the focus because they are the sources of value for customers and shareholders. product development. the financial perspective translates into continuously enhancing revenues.3. Products and technologies will rapidly go out of date.3. Competition will increase continuously. page 49 section 4. read the following articles:     section 3. reducing costs and improving asset utilisation.

1 Tuition period Time allocation: Before Individual Assignment 1.6 Reflection Quality improvement can increase profitability in two ways: by increasing customer demand and/or by decreasing costs.2 on page 93 of Young (2007). TQM has broadened the focus of the philosophy for the requirements of the business management performance system. control and decision making. How can managers measure productivity improvements? What are the differences between quality and productivity? Similarities? 8.4.4.4. Many recognise that the employee is the key to the successful satisfaction of the customer.4.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 8.2 Specific outcomes Understand strategic management accounting and its importance to strategy formulation.5 They aspire to improve the business process to better results. The 2000 version of ISO 9001 has brought about many new thoughts on implementing a quality management system to measure organisational performance. They assist in measuring business performance.4.5 Self-assessment Work through the scenario on page 667. Employees drive the processes that deliver the company outputs. 8.3 Critical questions Quality cost and productivity         Why is ‘quality cost’ information needed and how it is used? What is productivity? How do we calculate the impact of productivity changes on profit? Why is ‘quality cost’ the cost of doing things wrong? Identify and discuss four kinds of quality costs. The changes have come about as a modern development in line with other total quality management (TQM) and excellence thinking. 8. and then answer the questions on the same page. 8. Explain why external failure costs can be more devastating to a firm than internal failure costs.4 Learning through activities Read section 5. Most focus on the needs of the customer being recognised and satisfied. The principal objective of reporting on quality costs is to improve and facilitate managerial planning. A study of them leads to a simple focus on the following issues:      8. 8. There are more than 1000 models of the quality concept to be found in literature today.4. The networking of companies will become more and more popular. USING THE BALANCED SCORECARD AS A STRATEGIC MANAGEMENT SYSTEM 9 . 8.4.7 Conclusion Supplier performance and customer satisfaction with the quality of the products will become more important in performance measurement.

5.5.5.3.5.1. and how do they support an organisation's mission and strategy? 8.1 Tuition period Time allocation: Before individual assignment 2. 10 . and the need for employee development and education (learning) will increase. page 210 Section 9. become the means for articulating and communicating the strategy of the organisation to its employees and managers. 8. These measures. page 218 8. once developed.5.12 on page 745 of the textbook Managerial accounting (2007).4. 8.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 8.7 Conclusion The time span for strategic planning will shorten significantly. The measures also serve the purpose of aligning individual objectives and actions with organisational objectives and initiatives. Read the following in Young (2007):     Section 9. The need for accounting methods associated with R & D activities will increase. Systematic investment in research and development activities (R & D) will significantly increase in all industries.5. Prepare a summary from the elements shown in the exhibit.6 Reflection The four perspectives of the balanced scorecard define the strategy of an organisation. The role of teamwork will increase in importance as the need for new accounting methods to measure and improve business performance increases. page 190 Section 9.5. 8.3 Critical questions Strategic-based responsibility accounting   How does strategic-based responsibility accounting differ from functional-based and activitybased responsibility accounting? What two additional perspectives have been introduced by this approach.4 Learning through activities Pay attention to exhibit 16. page 199 Section 9.5 Self-assessment Work through ‘Exercise 16-11’ on page 764.2 Specific outcomes Use the concept of the “triple bottom line” to develop environmental management accounting systems in support of environmental stakeholder requirements. 8.2. Work through chapter 16 in Hansen and Mowen (2007: 744-754) entitled “The balance scorecard: Basic concepts”. The employees will become the most important production factor.

piloting and installation of "reverse osmosis" water treatment technologies for their discharge waters. Using your own knowledge and what you have read in Young. Please obtain copies of the Earthyear magazines for 2004 and 2005.6 TRIPLE BOTTOM LINE REPORTING AND THE IMPLICATIONS OF ENVIRONMENTAL RISK MANAGEMENT 8.6.4 Learning through activities Work through chapter 16 of Hansen and Mowen (2007) (pages 778 to 796). They are committed to international standards and investing in cleaner production. Read the following in Young (2007)"   section 7. How does the environment become a stakeholder? A degree of self-regulation would be Escom’s testing.6.2 Specific outcomes Use the concept of the “triple bottom line” to develop environmental management accounting systems in support of environmental stakeholder requirements.6.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 8.6. There you will find the names of organisations that have obtained awards for looking after the natural environment.1 Tuition period Time allocation: Before individual assignment 2.5 Self-assessment Please do ‘Exercises 17-2 & 17-3’ on pages 802 & 803.4. What is the difference between a realised external failure (environmental) cost and an unrealised external failure (societal) cost? What does full environmental costing mean? Explain how functional-based costing assigns environmental costs to products. Please review Sasol's performance in this regard. 8. What are the problems with this approach? 8. 8. think about the following questions:  What would be the benefits of the green balanced scorecard? 11 . 8.6. page 290 Also attempt to answer the following: Stakeholder theory requires that managers make decisions that take into account the interests of all the stakeholders in the firm.3            Critical questions What are the performance measures that would be included on a "green balanced scorecard"? What are the expected benefits of sustainability reporting? Why must we adopt the Global Reporting Initiative (GRI)? What are the pillars of the JSE Securities Exchange's SRI index? What are the six incentives for or causes of eco-efficiency? What is an environmental cost? What are the four categories of environmental cost? Define each category. page 143 section 12. In 2003 they received a special commendation as a result of their investments in innovation.3. They have been reported as making a concerted effort to change their old image.

The price mechanism thus fails to bring about an efficient allocation of resources. water contamination and air pollution). (2) understand the impact on all stakeholders. and in the case of negative externalities. South Africa's rich and critical resource base has to be wisely used to provide sustainable development and support to Africa.g. peace and good governance. an activity uses large volumes of chemicals and produces large volumes of waste. or indirect degradation such as unnecessary waste of materials and energy.6. Increasing compliance costs and the emergence of eco-efficiency have intensified the interest in environmental costing. for example.7 Conclusion An organisation's environmental policy must be relevant to the nature. If. The authors of Managerial accounting adopt a definition consistent with a total environmental quality model. Reporting environmental costs by category reveals their importance and shows the opportunity for reducing environmental costs by improving environmental performance. Both products and processes are sources of environmental costs. these impacts should be considered in shaping the environmental policy. and is the most elaborate system of accounting for social and ecological consequences. Companies need to develop strategies to (1) ensure King 2 compliance as a corporate citizen. Damage is defined as direct degradation of the environment. such as the emission of solid. (3) balance the challenge of financial performance and compliance whilst taking cognisance of stakeholder expectations. Environmental costs must be defined before they can be provided to management. name. the ideal state is that of zero damage to the environment (analogous to the zero-defects state of total quality management).6 Reflection Externalities are costs or benefits of a transaction or activity that are borne or enjoyed by parties not directly involved in the transaction or activity. A good first step is a report that details environmental costs by category.7 THE LIFE CYCLE ASSESSMENT MODEL AND ACTIVITY AND STRATEGIC-BASED ENVIRONMENTAL CONTROL 12 .6. liquid and gaseous residues that are subsequently introduced into the environment. In the total environmental quality model. Normally. prevention costs. products and services. This is done by regulating the producers of pollution or by taxing them to recover the cost to society. After a product has been sold. Production processes can create solid. Negative externalities include pollution. The triple bottom line builds on the balanced scorecard. Environmental cost reporting is essential if an organisation is serious about improving its environmental performance and controlling environmental costs. society expects government to intervene to promote efficiency. and (2) implement systems for sustainable development. scale and environmental impacts of the organisation's activities. Products themselves can be the source of environmental costs. its use and disposal by the customer can produce environmental degradation. internal failure costs and external failure costs. liquid or gaseous residues into the environment (e. 8.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3     Can a company enhance their profits through sound environmental management? Define sustainable development? What is the report content of the GRI? Discuss the concept of corporate reputation being the "new" intellectual capital? 8. 8. and (4) ensure respect for human rights. detection costs. firms consider only their private costs and ignore the wider social costs of their activities. South African companies need to develop strategies to (1) measure and monitor their impact. The core idea is to identify and measure a company's impact on the environment at every stage of the value-creation process.

If the management accounting system is going to play a role in life cycle assessment.1 Tuition period Time allocation: Before individual assignment 2. page 23 8.5 Self-assessment Work through Exercise 16-9 on page 763 of the textbook.3     Critical questions What is life cycle assessment? What are the environmentally important life cycle stages of a product? Define the three steps of life cycle assessment? How can life cycle costing improve life cycle assessment? 8.7. of Hansen and Mowen (2007). Read the following in Young (2007): 1 section 2. the product designs and process designs. Both internal and external linkages are thus considered important in assessing environmental consequences of different products.3.4 Learning through activities Work through pages 738 to 743. 8.MASTER OF BUSINESS LEADERSHIP UNISA GRADUATE SCHOOL OF BUSINESS LEADERSHIP 2010/0/0605-X/MBL3 8.7. 8. 13 . 8.7. 8. manufacturer and customer viewpoints.2 Specific outcomes Use the concept of the triple bottom line to develop environmental management accounting systems in support of environmental stakeholder requirements.7 Conclusion A strategic-based environmental management system provides an operational framework for improving environmental performance.7.7. Management can then compare the economic effects of competing designs.7.7.6 Reflection The life cycle viewpoint combines supplier. then the assessment and assignment of the environmental costs of production must be carried out by the producer in each of the life cycle stages.