Question

. Approach suggests that the expenditure on Human Resource needs to be capitalized and not transfer it to profit and loss account. Select one: O a. Historical Cost Approach b. Both A&B c. Net Present Value of future earnings approach d. None of the above​

Answer 1

Answer:

Definition of Human Resource Accounting (HRA):

Flamholtz., who has done considerable work in the area of human resource accounting, has defined it as follows:

“Human resource accounting is accounting for people as an organizational resource. It involves measuring the costs incurred by business firms and other organizations to recruit, select, hire, train and develop human assets. It also involves measuring the economic value of people to the organization.”