CALCULATIONS BASED ON AVERAGE USEFUL LIFE
W Effmert · ETR. Eisenbahntechnische Rundschau · 1975
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.