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Estimating Current Cost Depreciation Expense Using Numerical Analysis and the STAPOL Technique: A Pedagogic Exposition
Author(s) -
CRAIG RUSSELL,
TIPPETT MARK
Publication year - 1987
Publication title -
abacus
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.632
H-Index - 45
eISSN - 1467-6281
pISSN - 0001-3072
DOI - 10.1111/j.1467-6281.1987.tb00146.x
Subject(s) - exposition (narrative) , depreciation (economics) , current (fluid) , differential calculus , numerical analysis , differential (mechanical device) , accounting , cost accounting , foundation (evidence) , simple (philosophy) , computer science , calculus (dental) , econometrics , mathematical economics , mathematics , economics , epistemology , philosophy , mathematical analysis , microeconomics , law , geology , engineering , political science , art , dentistry , capital formation , aerospace engineering , literature , oceanography , profit (economics) , financial capital , medicine
Current cost accounting (CCA) recommendations have led to complex measurement problems. This paper aims to provoke discussion of the use of numerical analysis and the STAPOL technique as a method for measuring current cost depreciation expense. The measurement method analysed has a scientific foundation, is simple to apply, and yields accurate results. With slight modification, the method analysed is also applicable to other areas of CCA characterized by intractable measurement problems. Unlike other papers which have used differential calculus to analyse the use of numerical analysis in accounting, the exposition in this paper depends on only a rudimentary knowledge of algebra.