Accounting measurement definition

What is Accounting Measurement?

Accounting measurement is the aggregation of numeric information, typically in terms of a unit of currency. For example, the sales in a reporting period may be expressed in dollars of revenue. It is also possible to use some other unit of measure, such as hours of employee time or hours of machine time.  For example, employees spend 120 hours working on a consulting project. By using a standardized accounting measurement, it is easier to compare results over a period of time. Financial accounting involves the use of monetary units of currency, since the outcome of this accounting is the production of a set of financial statements. Management accounting is more likely to use non-monetary units of measure, since it is more concerned with operational metrics.

Accounting measurements are recorded in the accounting system, which stores the results of all business transactions in which an organization engages.