A Search Process for Multiple- Objective Management Accounting Problems: A Budget Illustration.

Abstract Management accounting multiple-objective decisions may be complex due to numerous objectives and constraints and the optimization criteria are often ill-defined. We illustrate these difficulties by describing typical complex management accounting problems and compare leading multiple criteria decision models to identify one that best matches the solution requirements of these problems. We conclude that the Combined Tehebychetf/Aspiration Criterion Vector Procedure is the preferable method. It uses a mathematical model to analyze management's criterion domain of objectives, which is much smaller than the task domain. Its an iterative procedure that makes multiple probes of neighborhoods of decreasing size in a nondominated criterion set. This enables the decision maker to learn about the feasibility of achieving objectives in a specific environment. The decision maker either selects a final solution or continues to search for a better solution in the neighborhood of either the "best" solution so far or an aspiration vector.