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.