The president of Noranda Minerals is evaluating the Environmental Management System in his resource-based company. The company undertakes an environmental audit, and the president must identify various stakeholders and prioritize their needs. He must decide if an environmental annual report should be made public. This case also underlines the increasing importance that qualitative considerations have in the financial decision-making process. Noranda Mines is a useful tool to discuss possible revisions to financial accounting and auditing standards in addressing environmental questions. (A sequel to this case is available, titled Noranda Minerals (B), case 9A91B009.)
Based on a preliminary analysis, the inventor of a licence plate protector believes the product would be viable. He collects information on the investments and costs necessary for production, and develops a selling price. But has he correctly identified the fixed, variable and step costs in his analysis?
Mencotti Wine is considering a new bottle labelling machine. The president wants to analyze a number of alternative investment decisions using the net present value approach. He must consider the income tax effects including the capital cost allowance on fixed assets.