Pertemuan 7

Akuntansi Keberlanjutan
Material Flow Cost Accounting
(MFCA)
 Concept of MFCA
MFCA potentially enables you to gain bigger apple with thinner skin

What are you producing?

Apple? orApple skin?
MFCA lets us consider “producing” both.
What are you producing?
Concept of MFCA

Apple? Or Apple Skin?

MFCA lets us consider “producing” both.
MFCA potential y enables you to gain bigger apple
with thinner skin.
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What is MFCA? – Triple impacts
What is MFCA? What is MFCA?
Material Flow Cost Accounting

Material Flow Cost Accounting 

Material
Product

Material 
Product
loss
Material 
loss

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Role of MFCA Role of MFCA

ISO 
14051
MFCA

Economic 
Environment
al aspects
and quality 
aspects

MFCA fulfills gaps between economic/quality aspects and

environmental aspects.
 MFCA and environmental performance
MFCA and environmental performances
High
Reduce

Focus of MFCA Reuse Process efficiency

&
Environmental
Recycle performance

Thermal recycle/waste management

 ISO 14051

Principles of MFCA

Principles of MFCA

Ensure
accuracy,
Understand
Link physical completeness Estimate and
material flow
and monetary and assign costs to
and energy
data comparability material loss
use
of physical
data

Reproduction of any information given on this page is strictly prohibited without written permission of the author.

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Propharm Japan Co., Ltd. All Rights reserved.
 Fundamental
elements of MFCA

Material
Quantity Material Cost
flow
centre balance calculation
model

Set measurement point Check balance Calculate cost Set up a model

between that links
Products and loss multiple quantity
(material loss) centres

Reproduction of any information given on this page is strictly prohibited without written permission of the author.

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Propharm Japan Co., Ltd. All Rights reserved.
 Reproduction of any information given on this page is strictly prohibited without written permission of the author.

arm Japan Co., Ltd. All Rights reserved. 12

arm Japan Co., Ltd. All Rights reserved.
 Reproduction of any information given on this page is strictly prohibited without written permission of the author.

apan Co., Ltd. All Rights reserved. 13

apan Co., Ltd. All Rights reserved.
View of Production Processes in MFCA

Quantity Center
(A Production Process)
Input Materials Products
Production Process of
　 　 Product and Material loss (Output as Good products)

Mass Balance
& Product Costing
Material Loss
( Output as Wastes)　　　　　　　　　　　　
 Approach of MFCA
Case Study : Approach of MFCA
Electricity

Input Output Product

Material
Factory (70 ton)
(100 ton)
Printed material

Output

Material loss
Wastewater 30 ton

Waste Carbon emissions Emissions to air

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 Solving Analysis
Conventional management Point of MFCA evaluation
Processing cost:
$350,000 Electricity

Input Output Input Output

Product: 70 ton
Material Material cost: $650,000
Material Product 70 ton
(100 ton) QC-1 Factory
QC-2 QC-3 Processing cost: Factory
QC-2
$ 350.000 100 ton
$650,000 --------------------------------
Total $ 1,000,000

Equivalent cost
evaluation
Material loss 30 ton
Material loss: 30 ton

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 Cost calculation based on MFCA-2

Energy cost: $50,000 System cost

Electricity: 10 kW $250,000

Input Output
Product: 70 ton
Material Material cost: $520,000
(100 ton) QC-1 Factory
QC-2 QC-3 System cost: $ 175.000
Energy cost: $ 35,000
$650,000 --------------------------------
Total $ 730,000

Key for improvement

Material loss: 30 ton
Material cost : $130,000
System cost: $75,000
Wastewater Energy cost： $15,000 Emissions to air
Waste management cost：$50,000
------------------------------------------
Total $270,000

Waste Carbon emissions

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 - Impact of MFCA-
lens-manufacturing process

Before After
Conventional lens material Near-shaping lens material

80% reduction of
shaved portion

Shaved portion Shaved portion

Source: Japanese Ministry of Economy, Trade and Industry (METI) (2011)

Material Flow Cost Accounting: MFCA Case Examples 2011, METI

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