National accounting conventions affect comparisons between warship prices. In the British approach described here, the first batch carries the shipyard jigs and equipment needed to build the class, while research and development costs are spread across its units. Later batches therefore come closer to the recurring cost of systems, material, and labor. The Type 23 example recalls an initial cost of about £180 million and a final-hull cost of roughly £60 million after removing inflation, compared with about £120 million in nominal money. These recalled figures distinguish production savings from the prices paid at different dates. The discussion also argues that inflation affects defence procurement through several stages of its supply chain.
Notable Point · 1:26:18-1:28:18
Why later warship batches can cost less
British batch accounting and recalled Type 23 figures show how initial shipyard costs, shared research, and inflation affect comparisons between early and late hulls.