Naoyuki Kaneda

E-Commerce Age needs revenue accounting, oriented toward serving information needs of managers and investors in planning and controlling a firm's sales activities and their financial consequences. We wish to show the revenue accounting proposed in Glover and Ijiri (2002) extended to Markov processes and dynamic programming to gain insight into their processes. In this paper, Markov process was used as a way of capturing the customer transitions and related impact of the corporate profit. We incorporate the possibility of the firm having alternative policies under which transition probabilities and payoffs may be altered, along with an algorithm for an optimal selection of the policies that maximize the long-term profit of the firm.