Andrew
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However, the simultaneously determined input = output value of period
2 equals 0.6, so that c is transformed into 30, v is transformed into
18, s is thus transformed into 30 - 18 = 12 and the profit rate is
transformed into 12/(30+18) = 250nce again.
Now THIS is a REAL "transformation problem."
As I post I've just sent shows by means of a similar numerical example,
this problem is NOT a matter of mere accounting. The relations of
determination differ when valuation is simultaneous and when it is
temporal.
Paul
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Why is this not an accounting problem. Working on current costs
the firm is still making a profit on current account. Taking
into account stock depreciation it has made a loss on its capital
account. Is this not a fairly standard accountancy issue?