integration of an entity's internal costs with external costs attributable to its activities, products and services. allocation of all of an entity's internal costs to products and processes, that is, allocation of indirect and fixed overhead costs as well as direct and variable overhead costs. method of accounting whereby all costs of exploring for and developing oil and gas reserves within a defined area are capitalized, subject only to the limitation that the costs so capitalized can be recovered by amortization against future revenues.
(Canadian Energy, Natural Gas Diversified, and Petroleum Industries)—a method of accounting under which all costs related to the exploration and development of oil and gas reserves are immediately expensed (a less conservative method than Successful Efforts Accounting).
An economic tool which takes into account the externalities involved in the production, use, and disposal of goods and services over time. Externalities are given prices to reflect their costs, including energy sources used, the environmental damage caused by the production, and the costs of disposal or recycling when the product is no longer usable. Natural or renewable resources, traditionally viewed as "free goods," are redefined as assets, having substantial value to an enterprise and being appropriately allocated in the calculation of profit and loss.
Accounting: In the context of management accounting, this is a method of financial and management accounting that allocates all direct and indirect historical costs to a product or process (ICF Inc., 1995). Environment: Used in the environmental context, this refers to desirable environmental accounting practices. Full-cost environmental accounting is basically the same concept, except that it aims to highlight the environmental elements (ICF Inc., 1995).
Full cost accounting (FCA) generally refers to the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary. Costs and advantages may be considered in terms of environmental, economical and social impacts. Full cost accounting information may be used by decision-makers.