Do life-cycle costing and assessment integration support decision-making

What is it about?

This study examines whether the integration of life cycle costing and life cycle assessment based on the sequence of activities within the value chain support decision making towards sustainable development. In this research, a framed field experiment with a case study within the Egyptian medical sector was employed, since the waste generated by this sector is not only large but also toxic. In total, 209 accounting and auditing staff employed in central hospitals in Egypt were interviewed. The study shows that integrating life cycle costing and life-cycle assessment through the value chain reduces costs, improves environmental performance and improves economic and environmental efficiency to make strategic decisions. This demonstrates that integration supports decision making to achieve sustainable development. Also, the study provides a framework for the integration of life cycle costing and life cycle assessment based on the value chain.

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Why is it important?

Our evidence related to the important role played by the integration of life cycle costing and life cycle assessment in the configuration of economic and environmental performance can be useful for informing future policy and regulatory initiatives, especially in developing countries such as Egypt. The implications of integration are of primary interest not only to government regulators and management accountants but also to investors, analysts, researchers and managers.

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