The cable could even be broken, so the top half is turning slower than the bottom. Quite why this should give a high reading beats me, but it would be far from the first time I have seen it happen. Same effect as a loose fitting??
As for in-built error, speedo error, like any instrument, is in terms of a percentage. To engineer out error is very expensive, so error is generally engineered in to be on the high (safe) side. Also, this error is normally within 10%. If it is over 10% and the bike is still under warranty, try to get it replaced as the error should be less than 10% to meet WoF standard,
ACC - It's where the Enron accountants all went.
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