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This paper examines the challenges of using index numbers in accounting, particularly for profit measurement amidst inflation.

Objections to Index Number Accounting.

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Discussion addresses profit measurement issues in accounting due to inflation, highlighting relevant index numbers' importance.

This paper examines the challenges of using index numbers in accounting, particularly for profit measurement amidst inflation.
Analyzed historical accounting practices related to profit measurement during inflationary periods.
Reviewed Sweeney's Stabilized Accounting as a key reference in this discussion.
Critically evaluated the validity of objections to index number usage in accounting.
Identified limited but significant objections to using index numbers for profit reporting.
Recommended index numbers that reflect changes in general purchasing power over those that do not.
Emphasized the superiority of broad commodity-based and consumer goods-based indices for accounting purposes.

Russell Bowers (1950) studied this question.

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