Limitations of accounting ratios 1)false accounting data gives false ratio
Answers
Answered by
0
LimitationsEdit
The valuation method is based on the false assumption that the dollar is stable.
Since the assets cannot be sold there are no independent checks of valuation.
This method measures only the costs to the organization, but ignores completely any measure of the value of the employee to the organization.
It is too tedious to gather the related information regarding the human values.
it may be possible that the employee is already fully trained and there is no need to employ any development, training, recruitment cost.It will create difficulty for a company to find out CTC according to acquisition model.
Does not account for software which can reduce the overall cost of human resources from by having integrated software completing the tasks of staff.
The valuation method is based on the false assumption that the dollar is stable.
Since the assets cannot be sold there are no independent checks of valuation.
This method measures only the costs to the organization, but ignores completely any measure of the value of the employee to the organization.
It is too tedious to gather the related information regarding the human values.
it may be possible that the employee is already fully trained and there is no need to employ any development, training, recruitment cost.It will create difficulty for a company to find out CTC according to acquisition model.
Does not account for software which can reduce the overall cost of human resources from by having integrated software completing the tasks of staff.
Similar questions