The calculation of labor-hour cost of producing treated drinking water
In proposals for a rudimentary method for calculation labor costs associated with a socialist economy, we operate under the assumption that the labor-hour will be adopted as the unit of choice. This has the strongest tradition in socialist literature, however in the 21st century different units, such as the kilowatt-hour, being a bit more scientific in that they are derived from actual physical measurements in addition to time, may prove to be more universal and accurate as an accounting tool. In any event, I would like to use the production of treated drinking water as an example not just because I have experience in the field but because it is typical of an accounting grey area which will arise in any accounting method involving labor time – a product which is both a finished one ready for consumption and a raw material for other productive processes.
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