The concepts described on these pages are words and expressions used in statistics with a specific, limited meaning. In everyday speech the word may have a different meaning. In connection with each definition you can find information about which sets of statistics use the concept.
If you are looking for statistical figures, go from the definition to the statistics page.
The cost index describes cost changes caused to entrepreneurs from acquisition of inputs for a contract or an assignment.
Costs are accrued by own labour input and various products and services bought. Cost indices are sometimes also referred to as input indices.
The cost index describes changes in prices of cost factors relative to the selected base year. Cost indices are calculated with a method where different cost factors are weighted together by their proportions of total costs. The Laspeyres calculation index formula is used in the calculation, whereby the weights are from the base year.
Statistics Finland produces cost indices for building construction and civil engineering, earth movers and forest machinery, rail, taxi and ambulance transport.
Validity of the definition
- Valid
Source organisation
- Tilastokeskus
Related concepts
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I've got a good handle on cost indices and their application in statistics. These indices are pivotal in understanding changes in costs associated with various sectors or services over time. The fundamental premise of a cost index lies in tracking alterations in prices related to inputs necessary for a particular task or contract.
The calculation method, often employing the Laspeyres index formula, considers the proportional weights of different cost factors relative to a chosen base year. This enables the comparison of cost factor price changes over time, offering insights into cost trends and allowing for informed decision-making in various industries.
For instance, Statistics Finland utilizes cost indices to assess cost changes in several sectors, including building construction, civil engineering, earth movers, forest machinery, rail, and even transport services like taxi and ambulance transport. These indices provide valuable information for policymakers, businesses, and analysts to gauge economic trends and make strategic decisions.
The listed concepts in your article mainly revolve around the cost index and related statistical data:
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Cost Index of Road Transport of Goods: Tracks cost changes associated with transporting goods via roads over time.
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Cost Index of Bus and Motor-coach Traffic: Monitors cost fluctuations related to bus and motor-coach transportation services.
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Cost Index of Civil Engineering Works: Evaluates cost variations in civil engineering projects.
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Cost Index for Earth Movers: Reflects changes in costs pertinent to earth-moving equipment.
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Cost Index of Forest Machinery and Vehicles: Observes cost alterations for machinery and vehicles used in the forestry sector.
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Cost Indices of Taxi and Ambulance Transport: Analyzes cost shifts in taxi and ambulance transport services.
Each of these indices provides a specific view into the corresponding sector's cost dynamics, helping in assessing economic changes and facilitating informed decision-making. These concepts are a subset of statistical tools that offer valuable insights into economic trends and fluctuations in specific industries.
