Question

Please discuss the nature of measurement and the reasons why we need and adopt measurement in accounting

Answer 1

A measurement in accounting is the computation of financial or economic activities in terms of money, hours or other units. An accounting measurement is a unit of certain measurable element which are applied for comparing and evaluating the accounting data. Accounting is generally quantified in terms of money however can also be recorded in terms of alternative units, number of jobs created, number of labor hours, etc. Different accounting measurements give different views of the corporation's overall health. We need and adopt measurement in accounting because with the usage of a variety of different accounting measurements, a person can know a more comprehensive view of the operations of a company and more easily compare them with those of other companies.