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Asset measurement in the costing of government services

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  • Steering Committee for the Review of Commonwealth/State Service Provision
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    Differences in asset measurement techniques can have a major impact on reported capital costs. Their influence on total unit cost depends on the importance of capital costs as a proportion of total costs for the particular service area being studied. In the areas of corrective services, police services and public hospitals the results reported in this paper indicate that different methods of asset measurement could lead to quite large variations in reported capital costs. Considered in the context of total unit costs, however, the differences created by these asset measurement effects were relatively small as capital costs represent a relatively small proportion of total cost.

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    Paper provided by EconWPA in its series Public Economics with number 0108001.

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    Length: 86 pages
    Date of creation: 04 Sep 2001
    Handle: RePEc:wpa:wuwppe:0108001
    Note: Type of Document - Word 97; prepared on IBM PC; to print on HP; pages: 86 ; figures: Nil
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