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Water Pricing: Backward‐Looking or Forward‐Looking Costs
Author(s) -
Hanke Steve H.
Publication year - 1978
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1978.tb04203.x
Subject(s) - marginal cost , economics , unit (ring theory) , unit cost , actuarial science , econometrics , microeconomics , mathematics , mathematics education
Backward‐looking costs are those computed by using historical cost data, which are accounting costs. Forward‐looking costs are those computed by using data for costs that are anticipated during a given planning period, and are referred to as marginal or incremental costs. The specific method used in the United Kingdom is called the discounted unit cost method.