What question did this study set out to answer?

The aim is to evaluate how measurement error affects the usefulness of current cost accounting for fixed assets.

The Accounting-for-Changing-Prices Experiment: A Valid Test of Usefulness?

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This article analyzes measurement errors in current cost accounting methods, indicating implications for financial reporting.

The aim is to evaluate how measurement error affects the usefulness of current cost accounting for fixed assets.
Discusses U.S. Financial Accounting Standards Board Statement 33
Describes various methods for measuring current cost of fixed assets
Presents survey data on measurement methods used in practice
Measurement error often leads to an overstatement of current costs, particularly for plant and equipment
Depreciation is recursively overstated due to inflated cost estimates
Significant errors occur more frequently in high-technology industries using older assets

Swanson et al. (1987) studied this question.

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