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Q. Explain Human resource accounting method?
Human resource accounting method: human resource is a valuable asset of any organization. This asset can be valued in terms of money. When the competent and well trained employees leave an organization, the human asset is decreased and vice versa. Human resource accounting method deals with cost of and contribution of human resources to the organization. Cost of the employee includes cost of man power planning, recruitment, selection, induction, placement, training, development, wages and benefits etc. Employee contribution is the money value of the employee service which can be measured by labour productivity of value added by human resources. Difference between cost and contribution will reflect the performance of the employees.
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