What is HR accounting?

What is HR accounting?

Human resource accounting is a process of measuring the cost and value of the people in the organization. It measures the cost incurred in recruitment, selection, training and developing employees. It also measures contribution of employees to organization towards its profitability.HR accounting helps an organization to furnish cost value information for making proper and effective management decisions about acquiring, allocating developing and maintaining human resources. It monitors effective use of human resources by the management and provide an analysis of human asset. Apart from this, it provides aid in the development of management principles and proper decision making.