Valuation of Human Resources: 3 Approaches | Accounting

In this article we will discuss about the valuation of human resources with the help of three approaches namely:- 1. Historical Cost Approach 2. Replacement Cost Approach 3. Opportunity Cost Approach. 1. Historical Cost Approach: The actual cost incurred on recruiting, selecting, training and developing the human resources of the organisation are capitalized and written off over the expected useful [...]