What does this research mean for the field?

Valuing individual durable assets for internal managerial decision-making and control can be effectively approached using three cost bases: original cost, internal opportunity cost, and external opportunity cost. Novelty: ClaimNovelty.METHODOLOGICAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

The article aims to develop a method for valuing individual durable assets for managerial information, rather than the entire firm.

March 18, 2026The Accounting Review

Valuing the Firm's Durable Assets for Managerial Information.

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Authors

YGY. GoldschmidtEconomic Research Service SSSeymour SmidtCornell University

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Implication

This article explores a method to value durable assets for internal managerial decisions, suggesting improved valuation techniques.

Key Points

The article aims to develop a method for valuing individual durable assets for managerial information, rather than the entire firm.
Discusses three approaches to asset valuation: past transactions, future earning power, and present market price.
Explores cost-based valuation methods: original cost, internal opportunity cost, and external opportunity cost.
Defines internal opportunity cost as the present value of cash flow from asset use within the firm.
Identifies three basic approaches to valuing assets potentially useful for managerial decision-making.
Provides a framework for distinguishing between various costs in asset valuation.

Cite This Study

Goldschmidt et al. (1969) studied this question.

synapsesocial.com/papers/69ba43764e9516ffd37a4af8 https://doi.org/10.2308/tar-4486634

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Valuing the Firm's Durable Assets for Managerial Information.

Discussion

Member takes

Implication

Key Points

Cite This Study

Valuing the Firm's Durable Assets for Managerial Information.

Discussion

Member takes

Implication

Key Points

Cite This Study

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