Material flow cost accounting and an application on business and construction machinery industry

As a result of the fact that businesses act with profit and value maximization targets, there are some effects on the environment. In the framework of environmental performance and sustainability, businesses now need to consider the effects of their activities on the environment. Therefore, they should consider their environmental performance along with their financial performance in the design of their activities. Within the scope of this thesis, it has been tried to find an answer to the question of whether it is possible to increase both performances of enterprises together. The ISO 14051 Material Flow Cost Accounting standard, first published by the International Organization for Standardization (ISO) in 2008, is an answer to the research question mentioned above. The results of the application studies of this method were first shared with the report published by the Ministry of Economy, Trade and Industry of Japan in 2011, examples of which are given in the second part. With these results, the publications made by attracting the attention of the academy have increased day by day. In the results obtained, it has been revealed that the wastes will be reduced and the efficient production outputs will increase with the environmentally friendly investments to be made by the enterprises. In order to support this result, in the last part of the thesis, a company that continues its activities in the business and construction machinery sector as an SME was selected and the Material Flow Cost Accounting (MFCA) method was applied to the production processes of the Tiger Drill machine produced by the enterprise. According to the result of the analyses made, it has been determined that 48.3% of the inputs included in the production processes of this machine leave the system as non-product output. According to the MFCA method, this output leaves the system as waste and emissions. Reporting that nearly half of the costs incurred in the production of a machine turned into a negative product in this way attracted the attention of managers. In this reporting, unlike traditional cost accounting reporting, these costs are classified separately as material loss costs. With the efforts of the managers to reduce this loss rate after seeing this report, both the costs will decrease and the negative impact on the environment will decrease as the resulting waste and emissions will decrease. As a result, the economic performance of the enterprise will increase as well as its environmental performance. Keywords: Environment, Environmental Performance, Material Flow Balance, MFCA