Which one of the following approaches of human resource accounting was suggested by Brummet, Flamholtz and Pyle?

Question

Question

This question was previously asked in

UGC NET Paper 2: Commerce 14 Oct 2022 Shift 1

Answer 1

The correct answer is Historical Cost Approach

Key Points

Replacement Cost Approach	Rensis Likert and Eric G.Flamholtz
Historical Cost Approach	Brummet, Flamholtz and Pyle
Opportunity Cost Approach	HeKiman and Jones

Important Points

Historical Costs Approach -

Under this method, the sum of all costs i.e., recruitment, acquisition, formal training, informal training, informal familiarisation, experience, and development are taken together to indicate the value of the human resources.
The value is amortized annually over the expected length of the service of individual employees and the unamortized cost is shown as investments in human assets.
If an employee leaves the firm (i.e., human assets expire) before the expected service life period, then the net value to that extent is charged to the current revenue.