Skip to content

ACCA Applied Knowledge · Business and Technology · Environmental and sustainability factors

A company wishes to measure the environmental impact of a product at every stage, from extraction of raw materials through production, use by customers and final disposal. Which technique is most suitable?

Life cycle assessment is the most suitable technique. It evaluates a product's environmental impacts at every stage, from raw material extraction through production, use and disposal, so the company can identify where the largest impacts occur and target improvements, which financial tools like variance analysis cannot do.

  1. ALife cycle assessmentCorrect
  2. BBalanced scorecard
  3. CBenchmarking against competitors' profits
  4. DVariance analysis

Explanation

Life cycle assessment evaluates environmental impacts across all stages of a product's life, from raw materials to disposal. The balanced scorecard is a broad performance framework, and profit benchmarking and variance analysis are financial tools that do not trace environmental impact by stage.

Did you get it right without looking?

One question tells you little. A timed set on Environmental and sustainability factors shows your real accuracy, how long you take and where you lose marks.

Practise Environmental and sustainability factorsFree diagnostic mock

More Environmental and sustainability factors questions