. What is the purpose of sustainability accounting and disclosure?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
SUSTAINABILITY AND STRATEGIC AUDIT
1. What is the purpose of sustainability accounting and disclosure?
2. Why are SASB standards needed in the business world?
3. Suppose you are tasked to construct and evaluate complex financial statements,
including those relating to group accounts, to show an organization's financial
position and performance. How do SASB standards relate to your task?
![Direction: Choose the correct answer from the given choices and Explain.
1) If an analyst determines that Company A is less likely than Company B to face
material impacts from environmental and climate risks, what piece of information would
likely lead to that conclusion?
A. The percent of revenue from coastal regions
B. The percent of revenue from business customers
C. The reclaim rate of plastic hotel room keys
D. The amount of energy needed to generate $1 of revenue
2) An analyst comparing the two companies' management of water use found that, on a
normalized basis, Company A was actually outperforming Company B. Which
normalization did the analyst use?
A. Revenue generated per cubic meter of water withdrawn
B. Cubic meters of water withdrawn per total number of rooms
C. Cubic meters of water withdrawn per average number of occupied rooms
D. Percent of water withdrawn from regions with high/extremely high water stress](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf593e11-ce83-45b7-8abb-69dbf99634b1%2F465f3956-bb10-4425-a234-c92cb6b4034e%2Fg6tvr6_processed.png&w=3840&q=75)
![3) As compared to Company A, how would Company B's performance on energy
management predominantly impact the valuation model?
A. Decrease cost of capital
B. Increase growth projections
C. Decrease expense projections
D. Increase book value of assets
4) How will performance on SASB metrics impact Company A's valuation as compared
to Company B?
A. Company B's higher percentage of revenue from leisure customers will likely
decrease valuation.
B. Company B's lower reclamation rate of hotel room keys will likely increase valuation.
C. Company A's lower percentage of revenue from coastal regions will likely decrease
valuation.
D. Company A's lower voluntary employee turnover rate will likely increase valuation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf593e11-ce83-45b7-8abb-69dbf99634b1%2F465f3956-bb10-4425-a234-c92cb6b4034e%2Fma5zi1r_processed.png&w=3840&q=75)
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