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Principles of Accounting, Volume 2: Managerial Accounting

Key Terms

Principles of Accounting, Volume 2: Managerial AccountingKey Terms

Key Terms

Brundtland Commission Report
report issued after the 1987 World Commission on Environment and Development that laid the groundwork for the concept of sustainable development
business sustainability
actions taken to sustain the business so that it survives and thrives well into the future
carbon footprint
measure of the amount of CO2 generated by an individual, group or organization
carbon output
measure of carbon dioxide emissions into the atmosphere
climate change
change in climate patterns due to the increased levels of carbon dioxide in the atmosphere which is attributed mainly to the usage of fossil fuels
corporate social responsibility (CSR)
actions that firms take to assume responsibility for their impact on the environment and social well-being
environmental sustainability
situation in which rates of resource use can be continued indefinitely without permanently depleting those resources
equity issues
related to the fairness of pay and job promotions, regardless of gender, sexual orientation, race or religion
full-cost accounting
accounting that recognizes all costs related to the provision of a product or service; this includes all economic, environmental and social costs
life-cycle accounting
similar to full-cost accounting, this assesses all costs related to the production of a product from the extraction of raw materials used to the final disposal of the product at the end of its life
materiality
how significant an event or issue is to warrant its inclusion or discussion
non-renewable resources
resources that, once used, are depleted, and not able to be used again
P/E ratio
company’s stock price divided by the company’s earnings per share and indicates the amount investors are willing to pay for one dollar of earnings
Paris Climate Agreement
2015 agreement between 196 nations to strive to limit the increase of global temperatures to 1.5 degrees Celsius
renewable energy
energy that is not depleted once used, for example, tidal energy, wind energy or solar power
social contract
expectation that companies will hold to an unwritten contract with society as a whole
stakeholder
person or group with an interest or concern in some aspect of the organization
sustainability
meeting the needs of the present generation without compromising the ability of future generations to meet their own needs by being aware of current economic, social, and environmental impacts
sustainability report
report that presents the economic, environmental or social impacts that a corporation or organization was responsible for
sustainable development
development that meets the needs of the present without compromising the ability of future generations to meet their own needs
triple bottom line (TBL)
expansion of traditional reporting that is focused on economic performance, to include social and environmental performance
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