2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

4. Conclusion Effective allocation of environmental costs on produced products belongs to one of the important factors that influence the sale of these products. Therefore, when the company uses the optimal method of allocation of indirect costs, the costs are accurately presented in the company’s costing system and the consumer pays all direct, indirect costs incurred during the production process. Hence, when the environmental costs dramatically increase the final price of the product, the demand for these products will be decreased. Probably, consumers will prefer more ecological products. This described system is essential in the automotive industry when the company produces different types of electric vehicles, hybrid vehicles, and vehicles with conventional engines at the same time. Optimal allocation of all mentioned costs can ensure the lower price of the electric vehicles and, on the other hand, the higher final price of cars with conventional petrol and diesel engines. Disclosure statement: No potential conflict of interest was reported by the author. References [1] Balali, Y. and Stegen, S. (2021). Review of energy storage systems for vehicles based on technology, environmental impacts, and costs. Renewable and Sustainable Energy Reviews , 135 , p. 110185. [2] Ballouki, I., Douimi, M. and Ouzizi, L. (2018). Decision support tool selection for Eco-design integration into the simultaneous design of product and its supply chain. Journal of Environmental Assessment Policy and Management , 20(02), p. 18. [3] Constantin, L. A., Teodorescu, C., & Nicolau, M., 2008. Acting Environmentally Proactive in an Emerging Market-Oriented Economy. Water, Air, & Soil Pollution: Focus , 8 (5), pp. 565–575. [4] Daniels, B., Steele, M. and Sun, L.G., 2018. Just Environmentalism. Yale L. & Pol’y Rev. , 37 , p. 1. [5] Drury, C.M. (2013). Management and cost accounting . Springer. [6] Ekins, P. and Zenghelis, D. (2021). The costs and benefits of environmental sustainability. Sustainability Science , 16 (3), pp. 949–965. [7] Jamil, C.Z.M., Mohamed, R., Muhammad, F. and Ali, A., 2015. Environmental management accounting practices in small medium manufacturing firms. Procedia Social and Behavioral Sciences , 172 , pp. 619–626. [8] Jo, H., Kim, H. and Park, K. (2015). Corporate environmental responsibility and firm performance in the financial services sector. Journal of business ethics , 131 (2), pp. 257–284. [9] Mohr, Z. (2017). Cost accounting at the service level: an analysis of transaction cost influnces on indirect cost measurment in the cost accounting plans of large us cities. Public Administration Quarterly , pp. 91–129.

95