Objects or Events to be Measured:-Meaning,Understanding,Examples (Commerce Achiever)

Accounting and Measurement:

Measurement is the assignment of a system of numbers to objects and events in accordance with logical mathematical rules. Measurement is a vital aspect of Accounting. Primarily transactions and events are measured in terms of Money. Any measurement discipline deals with three basic elements of measurement, viz., identification of objects and events to be measured, selections of standard or scale to be used, evaluation of dimension of measurement standards or scale.

Objects or Events to be Measured:

There is no uniform set of events and transactions in Accounting which are required for decision making. Various information are for various purposes. For example, in Cash Management, various cash receipts and payments are necessary objects. Decision makers need past information, present state of affairs as well as future projections. While past and present activities can be measured with some degree of accuracy, future activities can only be predicted.