GENERAL KNOWLEDGE

Detailed explanation-1: -Historical Cost Method. Under the Historical cost method, the sum total of all the costs related to human resources is calculated to find out the value of a human resource. These costs include the cost of recruitment, selection, training, placement, and development of human resources of an organization.

Detailed explanation-2: -One can measure costs through human resource accounting in two ways: (1) the original or historical cost of human resources, and (2) the replacement costs of human resources. The original cost of human resources may be defined as the sacrifice that was actually incurred to acquire and develop or replace people.

Detailed explanation-3: -Human Resource Accounting means accounting for people as the organisational resources. It is the measurement of the cost and value of people to organisations.

Detailed explanation-4: -The standard cost method of human resource accounting involves determining the total cost of recruiting and hiring each employee, as well as the cost of any training or development.