Question

Significance of management accounting in an organisation

Answer 1

Model on human resource accountingEdit

This model prescribes the human resource accounting approach for two categories of employees:

Employees, who are at strategic, key decision-making positions such as MD, CEO (Top Executives)

Employees, who execute the decision taken by Top Executives

Model arrives value of human resources as sum of below-mentioned three parts:

Real capital cost part

Present value of future salary/wages payments

Performance evaluation part