An overview of the theoretical basis of material flow cost accounting

In recent years have seen the international trade challenged to improve efficiency by reducing its material and energy usage. Material flow cost accounting has been suggested as a management tool that can assist and a new international environmental management accounting standard, ISO 14051, has emerged for consideration by business. Concerns about the lack of theoretical knowledge and practical application of these tools exist. Organizations can use to understand the scope of additional new material flow cost accounting and apply this method in different parts of organization. This paper presents a literature review of existing research on material flow cost accounting and Current views of management.