What question did this study set out to answer?

The aim is to investigate the accuracy of price indexes in estimating current costs and the associated measurement errors.

An Empirical Examination of the Potential Measurement Error in Current Cost Data.

View Full Paper

Ask AI

Bookmark

Authors

Empirical analysis investigates measurement error in current cost data for machinery and equipment, suggesting implications for financial reporting.

The aim is to investigate the accuracy of price indexes in estimating current costs and the associated measurement errors.
Statistical analyses to compare Producer Price Index estimates with actual current order prices.
Examine distributional properties of PPI estimates.
Identify sources of measurement error in different equipment categories.
Measurement error generally results in an overstatement of new current costs.
Product mix errors dominate for Electrical and Miscellaneous Equipment.
Pricing errors are significant for General Purpose Equipment.
Inadequate quality change adjustments affect Machine Tools and Special Industry Equipment.

Keith A. Shriver (1987) studied this question.

View Full Paper

Ask AI

Bookmark

Empirical analysis investigates measurement error in current cost data for machinery and equipment, suggesting implications for financial reporting.