MANAGEMENT OF ENVIRONMENTAL COSTS OF ELECTRICAL COMPANIES OF BOSNIA AND HERZEGOVINA

Abstract

Managing a modern enterprise is a complex process, which includes calculation and cost management
based on: activity flows, JIT (just-in-time), total quality costs, environmental protection costs, shortened product life
cycle. In recent times, there is extremely current information: financial and non-financial, which touches on issues of
environmental protection and accounting techniques for their calculation. Reporting on environmental costs and
their causes provides the potential for their reduction, through process redesign, in order to reduce the use of
hazardous substances or environmental pollutants. The need to prepare financial reports on the costs of
environmental protection, as well as a classification of costs similar to the classification of total quality costs, is
emphasized. Environmental accounting is a complex field that aims to fulfill certain information needs of various
interest groups. Traditional cost accounting systems make it impossible to account for environmental protection
costs, hiding them among other general cost groups. In order to adapt cost accounting to the informational needs of
management related to environmental protection issues, the newer costing approach: Activity-based costing and
Value Stream costing can be a good methodological basis.
Environmental cost reporting is essential for a business that is serious about improving its environmental
performance and controlling environmental costs. The report on the company's performance is an information base
that evaluates and monitors costs and benefits separately. Also, the financial report on the environment could be part
of the report on progress in the field of the environment, which is presented annually to the company's stakeholders.
Environmental costs behave in the same way as quality costs. The new challenge for environmental financial
accounting will be precisely in the emerging sphere of environmental management accounting, which is developed
through procedures, for example including the costs of air and water pollution, the comparison of the use of
materials and raw materials in industrial production, especially through the aspects of alternative recycling and
green economy, in the area of energy of Bosnia and Herzegovina. Environmental accounting, by correctly
identifying environmental costs, can contribute to new projects for cleaner production and at the same time improve
the performance of environmental protection.