What Is Quantitative Accounting?

Accounting quantitative method is a method for accounting entities to determine the amount of capital movement in accordance with certain requirements and with the aid of calculation tools. In accounting calculation and management work and accounting research work, a large number of accounting quantitative methods are used, such as the full cost method, variable cost method, value engineering method, volume and cost method, input-output method, economic batch method and other mathematical methods. Accounting quantitative methods have the characteristics of reflecting quantitative relationships, adopting calculation tools, and reflecting the level of science and technology. With this method, the basis must be true, the calculation must be correct, and at the same time, it must be combined with qualitative accounting methods. ^[1]

Accounting quantitative method

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Accounting quantitative method is a method for accounting entities to determine the amount of capital movement in accordance with certain requirements and with the aid of calculation tools. In accounting calculation and management work and accounting research work, a large number of accounting quantitative methods are used, such as the full cost method, variable cost method, value engineering method, volume and cost method, input-output method, economic batch method and other mathematical methods. Accounting quantitative methods have the characteristics of reflecting quantitative relationships, adopting calculation tools, and reflecting the level of science and technology. With this method, the basis must be true, the calculation must be correct, and at the same time, it must be combined with qualitative accounting methods. ^[1]

A value used in a nominal scale to indicate whether it belongs to the same person or thing.

The size of the numerical value used in the order scale corresponds to the specific order of the research objects. For example, "5,4,3,2,1" or "3,2.5,2,1.5,1" or "3, 2.5, 2, 1.5, 1" for the upper, middle, upper, middle, lower and lower tiers of the social class belong to this one type. It is just that the gap between 5 representing the upper and upper layers and 4 representing the upper and middle layers, and the gap between 4 representing the upper and middle layers and 3 representing the middle layers are not necessarily equal. 5, 4, 3, and so on are arbitrarily added symbols, if it is written as 100, 50, 10, it does not matter.

The numerical value used for the pitch scale not only indicates the amount of the measurement object, but also the degree of their size, that is, the size of the interval. However, the origin in this scale can be set arbitrarily, but it does not mean that the amount of the thing is "none". For example, O ° C is 273 ° K absolute and 32 ° F.

The values of the nominal scale and the ordinal scale cannot be added, subtracted, multiplied, and divided, but the values of the interval scale can be added and subtracted. However, since the origin is arbitrarily set, multiplication and division cannot be performed. For example, the difference between 5 ° C and 10 ° C can be said to be the same as the difference between 15 ° C and 20 ° C, both being 5 ° C. But it cannot be said that 20 ° C is 4 times higher than 5 ° C.

The meaning of the scale is absolute, that is, it has an origin of 0 meaning "nothing". Length, weight, time, etc. are all measured on a scale. The differences and ratios of the measured values on the scale are comparable. For example: the difference between 5 minutes and 10 minutes and the difference between 10 minutes and 15 minutes are 5 minutes, and 10 minutes is 5 times that of 2 minutes. The scale can be added, subtracted, multiplied and divided.