Another point in favour of boring is that you make all the size measurements with your equipment. So it matters not at all the the nominal 0.875" rod measures 0.872" or 0.878" with your equipment. You simply verify the error between your internal and external measuring kit and make the sizes required to get a nice fit. If the internal kit says 0.874" and the external says 0.876" when the sizes are just so you just have to take a bit more care in writing the target measurements down and setting the lathe cuts.
The readings my be wrong way round but its the actual size that matters how you get there isn't terribly important.
Working with errors like that would (now) drive my temper needle two laps past "danger UXB (nuke)" in the red zone but in over 40 years I've managed to accumulate the good stuff. Folk starting out are unlikely to be as fortunate. Back in young, hairy and optimistically enthusiastic days I've coped with similar.
Of course that sort of error completely wrecks any chance of good results from a reamer bought to suit a measured size. Which is why the professional shops pay serious money to keep things calibrated. It should perhaps be noted that measuring equipment of any decent brand holds scale accuracy remarkably well over many years of use. Most errors on anything not obviously worn out will be end point setting.
I'm not a great fan of go-no go gauges for this sort of work. I prefer to shoot for a measured size one or two cuts short of the target and set the slide dial to zero for that point. Having made the cut, and spring cuts if boring, on zero I then check the diameter and reset the zero for the final diameter. With typical home shop machinery its best if the same depth of cut is used on the first approach to zero and on subsequent ones. Not forgetting spring cuts before measurement. Working in that fashion can be a little tedious but nice fits equivalent to tenths thou level accuracy can be produced on any lathe whose condition is noticeably better than "right old nail".
Hafta say that I tend to use 50 thou (imperial) or 1 mm (metric) cuts for pretty much everything beyond the "rush a lot off quick" stage unless the job is too small. Keeps the maths simple. Maybe I'll halve it for a finishing cut should the material demand such. Easy with the machinery I have and appropriate for what I mostly do.
Its worth finding the sweet spot for your equipment. Invariably this will be less than the machine is capable of if worked to its full performance but the time taken for extra cut or three is rarely of import on small jobs when stacked against a lower risk of error or possibly overloading a tool requiring time out to re-sharpen.
Setting the slide dial so either the final cut or the last but one "measurement" cut occurs on zero can be a good habit. Yep, I've done the finish on 0.687", drat, shoulda been 0.678" thing a time or three or (be honest) more.
Clive