Contributions of Accounting to Measurement in Management

The quantitative aspects of business management were left almost entirely in the hands of accountants prior to the advent of "scientific management" some seventy-five years ago. Although this term has fallen into disuse, the emphasis upon quantitative bases for decision-making and control has increased as the management problem has become more complex. Needs for additional data and for more comprehensive analysis have brought changes in accounting to provide more frequent and more detailed information. New systems for processing data have been developed; in some cases these appear to have replaced or to have amended the traditional notions about accounting. Actually, none of the new methods really alters the basic situation: no one approach to managerial measurements is completely effective in all circumstances. What is really needed is a combination of techniques; traditional and novel methods, census and sampling techniques, general- and special-purpose analyses all contribute to the measurement objective. We should strive to combine all available quantitative techniques in such ways as will provide optimum service to meet the needs of management.