Productivity Measurement for a Distribution Firm
W. Erwin Diewert
University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)
Ann Marie Smith
Columbia Distributors, Ltd.
NBER Working Paper No. w4812
The paper derives a consistent accounting framework for the treatment of inventories when measuring the productivity of a distribution firm. The average purchase price of an inventory item during an accounting period must be distinguished from its average selling price and these two average prices should be distinguished from the corresponding balance sheet prices. The accounting framework is implemented for a distribution firm which sold 76,000 separate items. The firm achieved a 9.6 percent per quarter total factor productivity growth rate over 6 quarters.
Number of Pages in PDF File: 17working papers series
Date posted: May 25, 2006
© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.422 seconds