What is Quantification?

Quantification is the expression of an event in numeric terms. The event may be subjective in nature, so the quantification is directed at a specific attribute exhibited by the event. Quantification is especially useful in business from an analysis perspective. If events can be converted into data using a standardized collection method, then it can be plotted on a trend line over time to identify spikes or dips that require management action.

Examples of Quantification

Quantification is quite useful for in a business environment, where it is needed to make a variety of business decisions. Here are several examples:

Quantification in accounting. Accounting systems have been designed to measure specific attributes of business transactions, which are then aggregated into financial statements. Depending on the nature of a quantified transaction, the accountant may elect to expand upon the situation in the footnotes that accompany the financial statements.
Quantification in quality assurance. Performance variances are quantified in quality assurance applications to determine whether production processes are departing from pre-set quality limits. If so, this triggers an investigation to correct the process in question.