A discussion of how to establish a system of enterprise environmental cost accounting

It has been fully recognized that enterprises' production and operation are vital causes of the environmental pollution. Enterprises should be responsible for the pollution, thus it is necessary for enterprises to take the environmental cost into account. This paper makes a study of the environmental cost in terms of the theoretical basis and principles, and tries to establish a system of environmental cost accounting. It is pointed out that the assignment of environmental cost should be conducted by use of the ABC method. The measurement of attributes should be mainly based on the historical cost and current cost according to the features of environmental cost, accompanied by non-historical cost. The unit of measurement should be in a combined form of currency measurement and article measurement.