A Review on Material Flow Cost Accounting (MFCA) for SMEs
Mechanical Departmemt, Shri S’ad Vidya Mandal Institute of Technology (Bharuch), India
ABSTRACT
The main goal of this review paper is to explain the concept and procedure of MFCA as concerning a manufacturing company. The idea of MFCA is to contribute to the sustainable and complete development of an organization. Early findings suggest that the MFCA offer great potential for improvement in economic and environmental performance and therefore, it is recommended for manufacturing firms to proactively adopt it to achieve the sustainable development. Accordingly, examples of SMEs are taken into account. A comparison of company strategy has been given both before and after implementing MFCA. This helps in the following ways: (i) Cause of waste generation and its amount; (ii) Costs of wastes and ways to reduce them. It saves essential company assets while also reducing the organizations’ negative environmental impact as material and energy saved can be used again for further purposes, thus reducing the load on the environment to sustain these organizations.
