Considerations Regarding Inbound Regenerative Management Accounting Application on Eco-efficient Business Models

Abstract

Inbound regenerative management accounting as a cost control process is a fundamental shift in the world of business due to the changes it implies upon the mentality of seeing and developing a business model. More and more economic entities begin to realize the eco efficient potential they have at their disposal and are beginning to replace linear business models with circular business models. Within a linear business model the economic entity controlled the production and distribution processes using management accounting and calculation cost methods using implicit explicit and mix costs. The classic management accounting tool offers its usefulness mostly to investors and shareholders ensuring high return rats and increases overall profit neglecting the social and environmental impact and generating tons of wastes in the process. Inbound management accounting represents a new and eco-efficient way of managing the production and distribution process, raising awareness and boosting social responsibility and in the same time generating high return rats and considerable profit on medium and long term while gaining comparative advantage on the global market.