Practice Questions

1. Sustainability is referred to as being:
   

   	a.	organisations that can last longer than others.
   	b.	the pursuit of endeavours that prolong the use of resources.
   	c.	any activity that is of a higher than average standard.
   	d.	the pursuit of green policies at all costs.

2. A large part of sustainability accounting practices involves the measurement of:
   

   	a.	units produced.
   	b.	units sold.
   	c.	government policy.
   	d.	resource consumption.

3. Which of the following would not be considered an external cost?
   

   	a.	Direct labour cost
   	b.	Community degradation from an organisation’s operations
   	c.	Lowering school completion rates in village communities – youths choosing to work instead in factories
   	d.	Environmental degradation from organisational operations

4. Triple bottom line reporting considers:
   

   	a.	economic, social and psychological performance.
   	b.	social, economic and environment performance.
   	c.	psychological, economic and social performance.
   	d.	social, economic and management performance.

5. Sustainability value chains attempt to show how:
   

   	a.	profit can be earned from being more efficient.
   	b.	costs can be minimised by focusing on productivity.
   	c.	organisational sustainability activities can lead to superior business outcomes.
   	d.	all of these responses are correct.

6. Which of the following elements does not relate to the economic aspect of triple bottom line reporting?
   

   	a.	Expenses
   	b.	Profit
   	c.	Donations to community
   	d.	Exports

7. Which of the following elements does not relate to the social aspect of triple bottom line reporting?
   

   	a.	Labour standards
   	b.	Revenues
   	c.	Donations to community
   	d.	Health and safety

8. Which of the following elements does not relate to the environmental aspect of triple bottom line reporting?
   

   	a.	GHG emissions
   	b.	Water use
   	c.	Spills onto waterways
   	d.	Exports

9. . Which of the following is an example of a prevention cost?
   

   	a.	Fines for breach of environmental standards
   	b.	Employee health costs
   	c.	Implementation costs of new technology to minimise risk of environmental damage
   	d.	Costs to monitor existing environmental systems in the organisation

10. Which of the following is an example of an appraisal cost?
    

    	a.	Fines for breach of environmental standards
    	b.	Employee health costs
    	c.	Implementation costs of new technology to minimise risk of environmental damage
    	d.	Costs to monitor existing environmental systems in the organisation

11. Which of the following is an example of an internal failure cost?
    

    	a.	Fines for breach of environmental standards
    	b.	Employee health costs
    	c.	Implementation costs of new technology to minimise risk of environmental damage
    	d.	Costs to monitor existing environmental systems in the organisation

12. Which of the following is an example of an external failure cost?
    

    	a.	Fines for breach of environmental standards
    	b.	Employee health costs
    	c.	Implementation costs of new technology to minimise risk of environmental damage
    	d.	Costs to monitor existing environmental systems in the organisation

Solutions: (answers are directly linked to definitions in Chapter 11 textbook content)

1. b
2. d
3. a
4. b
5. c
6. c
7. b
8. d
9. c
10. d
11. b
12. a