calculate an activity rate,and assign those costs to the respective products.If some of the energy consumption and environmental releases are associated with the use of the product after purchase,then a full environmental costing analysis requires their inclusion.It is also possible to assign only private costs.Recycling and disposal are separate but important issues.Many of the costs here are societal costs ,and their measurement becomes more difficult.Taking only a private costing approach is also possible for recycling and disposal.
For example,assume that the following environmental costs per unit have been determined for the two cups