What are Quantitative Factors?

//What are Quantitative Factors?
What are Quantitative Factors? 2017-10-09T08:06:42+00:00

Definition: Quantitative factors are outcomes from certain actions that are measurable in numbers or numeric terms. In other words, managers can quantify the effects of a decision. This could include measuring costs, revenues, or even non-financial data for outcomes to a decision.

What Does Quantitative Factor Mean?

Every decision a manager or supervisor makes deals with relevant costs and revenues. Managers try to predict what the future costs and the future revenues will be if a certain action is taken or decision is made. Most managers look at the relevant quantitative factors when making any important decisions.


Managers often use quantitative factors when deciding whether to buy a new piece of equipment. The quantitative factors of buying a new piece of equipment are both financial and non-financial. For instance, the new machine might use different, less expensive raw materials. This is a financial, quantitative factor because the direct material costs are decreasing because of the new equipment. The non-financial factors involved with purchasing the new machine could be decreased labor hours.

Since the machine produces products more efficiently, less labor hours are required to produce the same amount of products. The number of labor hours saved by purchasing the new machine is non-monetary, but it can be measured. The cost savings from the decreased labor hours is however a financial benefit.

Quantitative factors aren’t the only factors used by management in the decision making process. Most managers also weigh qualitative factors along side quantitative factors in order to make a strategic decision.