Limitations of Money Measurement Concept
1. Exclusion of Non-Monetary Factors: The concept of money measurement ignores non-monetary factors such as employee satisfaction, brand value, and environmental impact, which can be crucial indicators of a company’s health.
2. Subjectivity: Assigning monetary values to certain items, like goodwill or intellectual property, can involve subjective judgements, potentially leading to inconsistency.
3. Ignores Qualitative Aspects: The concept overlooks qualitative aspects that could impact an organisation’s long-term success, such as innovation, employee skills, and customer loyalty.