ABSTRACT
Evaluating investments in human resources centers on the technique of human resource accounting. The capitalization of costs for human resources can provide a useful tool for managing and developing policies in the hiring practices of an organization. While this concept appears to have more value as an internal management tool, it can be an informative device for reporting the investment of human resources to stockholders and the effect it might have on future earnings of the company. The basic difference between human and capital assets is that human assets are considered incapable of being sold. Probably the most important contribution that management can make to an organization is providing the right people for the right job. The cost approach Measures an investment in human resources similar to the capital expenditures investment concept. Such costs as hiring, recruiting, transportation costs, training, and development can be totaled and amortization schedules compiled and expensed to the statement of income as utilized.
