Quantitative and qualitative information - cost accounting, Cost Accounting

Quantitative and Qualitative Information in Accounting Systems

The availability of information is the lifeblood of any type of management and cost accounting system. It is vital such input information is appropriately controlled in order such output information is helpful.  That information should be relevant for management's planning, and decision making control reasons.

The information employed in management and costs accounting may be qualitative or quantitative.

Quantitative is that which may be measured in monetary terms or other physical units as like an example of material may be expressed like ok Shs. 1000 or 250 kilos. It is simply objectively expressed.

Qualitative information is that information which cannot be objectively expressed. Therefore it is very difficult to quantify that information and for this purpose, it is largely subjective, as an example: a comment via management to the improved staff's morale resulting in raised profits- it is not easy to express the improved staff morale in monetary quantified terms.  It is impossible or not easy to objectively quantify qualitative information.

Cost accounting mainly employs quantitative information whereas financial accounting employs purely quantitative information. Management accounting employs a mixture of the two however the information is at rest most quantitative. Managers employ both quantitative and qualitative information.  However the accounting system is the major source of qualitative information.

Posted Date: 2/5/2013 2:27:09 AM | Location : United States







Related Discussions:- Quantitative and qualitative information - cost accounting, Assignment Help, Ask Question on Quantitative and qualitative information - cost accounting, Get Answer, Expert's Help, Quantitative and qualitative information - cost accounting Discussions

Write discussion on Quantitative and qualitative information - cost accounting
Your posts are moderated
Related Questions
Contract Accounts It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots.  Every contract is given a number

OBJECTIVES OF COST ACCOUNTING : 1-DETERMINING SELLING PRICE 2-CONTROLING COST 3- PROVIDING INFORMATION FOR DESING MAKING 4-ASCERTAINING COSTING PROFIT 5-Facilitating preparation of

Problem 4-12 Multiproduct CVP [LO 4] Fidelity Multimedia sells audio and video equipment and car stereo products. After performing a study of fixed and variable costs in the prior

#questionFrame-it Ltd is a manufacturer of metal picture frames. The firm''s two product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20 x 25 cm). The prima

Manson Manufacturing applies manufacturing overhead at a rate of $30 per direct labour hour a)when during the year was this rate computed b)Describe briefly how this rate was

(i) Describe the difference between the balance sheet and the income statement in financial statements of companies. (ii) Give two examples of intangible assets and two exampl

Smith Corporation purchased an intangible asset for $110,000. Compute the second year's tax amortization. The second year would be a full year's amortization. The company estimates

Relevant Costs and Decision-Making The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevanc

A normal job-order costing system is a system that uses :    A.  actual costs for direct materials and estimated costs for direct labor and overhead B.  estimated costs

A local hotel offers lodging services.  You can pick a name for the hotel(Home Sweet Home Hotel). Your team will develop a prototype reservation system to record client bookings fo