CAS-14: Pollution Control Cost

• What pollution control is (§§4.5–4.16, 5.9)
• Measuring the cost: in, out and deducted (§§5.2–5.16)
• Future and possible costs (§§5.3, 5.4, 5.17)
• The finished Stage 3 cost card

Chapters

1. Clean water out · Treating wash water, quietening the generator, closing the sludge pit (§§4.5–4.7, 4.11, 4.16, 5.1, 5.9)
2. Running the treatment plant · Count what the plant uses; keep fines and interest out; take subsidies off (§§5.2, 5.5–5.8, 5.10–5.16)
3. A bill that arrives in four years · Set aside a share of a sure future clean-up each month (§§5.3, 5.4, 5.17, 8.4, 8.5)
4. The unit, fully costed · Put Stage 3 together (§§6, 7)
5. Spot the mistakes in the pollution control statement · Last challenge of Stage 3 (§§5.4, 5.10, 5.13, 5.15, 5.17)

Key terms

• Pollution control (§§4.5–4.7, 4.11, 4.16, 5.1, 5.9): Controlling what a business lets out into the air, water and soil, using materials, processes or practices that reduce pollutants. Its cost is everything the activity uses.
• Measuring pollution control cost (§§5.2, 5.5–5.8, 5.10–5.16): Count costs when they happen, at what they cost. Your own work counts materials, people, equipment and utilities; a contractor’s work counts his charges plus anything you supplied. Fines, interest, pretend and unusual costs stay out; subsidies and recoveries come off.
• Future and possible pollution costs (§§5.3, 5.4, 5.17, 8.4, 8.5): Future clean-up costs that are reasonably certain are estimated and charged each period, based on the pollution made. Possible costs wait until they are certain and measurable. Research to avoid pollution is research cost.