RADIUS Accounting
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The framework presented above outlines a method by that can be applied to the evaluation of the benefits of improved environmental accounting. In this section we apply the framework more formally and to a specific form of decision-making. In this decision-making setting managers must make an optimizing decision based on incomplete information, information that could be improved at some cost by better accounting data or procedures. A simple but pervasive production decision is modeled--the choice and intensity of inputs to a production process--and the impact of improved input price information on the firm's decisions and profitability is calculated. The goal is to identify...
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