Because environmental issues span the extended value chain of the firm, environmental management accounting uses supply chain management by:

Question

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Environmental issues span the entire value chain and therefore environmental management accounting uses supply chain management by identifying and using environmentally sensitive suppliers as well as assisting customers with environmentally sensitive disposal of the firm's goods. This helps to ensure that the environmental impact of the firm's activities is minimized throughout the value chain. In addition, considering cost savings by using customer profitability analysis is not directly related to environmental management accounting.

Because Environmental Issues Span the Extended Value Chain of the Firm