CALCULATIONS BASED ON AVERAGE USEFUL LIFE

DAS RECHNEN MIT GEMITTELTEN NUTZUNGSZEITEN

To determine the capital cost of articles made up of parts with different average useful lives, it is usual to use averages. The author shows that calculating averages in this way lead to systematic error which makes results wrong. He explains the error and proposes a new method. Using an example with figures, he also shows the practical application of the method suggested and at the same time, the disparity between the results of the two methods.

• Corporate Authors:

  Hestra Verlag

  Holzhofallee 33, Postfach 4244
  6100 Darmstadt 1,   Germany 
• Authors:
  • Effmert, W
• Publication Date: 1975-10

Language

• German

Media Info

• Features: Tables;
• Pagination: p. 385-388
• Serial:
  • Eisenbahntechnische Rundschau
  • Volume: 24
  • Issue Number: 10
  • Publisher: Hestra Verlag

Subject/Index Terms

• TRT Terms: Analysis; Capital investments; Costs; Economics; Life cycle costing
• Uncontrolled Terms: Cost analysis
• Subject Areas: Economics; Finance; Railroads;

Filing Info

• Accession Number: 00130804
• Record Type: Publication
• Source Agency: International Union of Railways
• Files: TRIS
• Created Date: Apr 7 1976 12:00AM