Question
An employee is recruited in to the company. The company incurred RO 500 for training, RO 200 for selection and recruitment, RO 100 for Employee
An employee is recruited in to the company. The company incurred RO 500 for training, RO 200 for selection and recruitment, RO 100 for Employee development. The employee is expected to be in the company for five years. The company Capitalized the cost incurred on the employee and amortized it over five years equally.
Which approach of human resource accounting does the company follow in the above case?
a.
Replacement cost approach
b.
Historical cost approach
c.
Opportunity cost approach
d.
Present value of future earnings approach
From the above case, the amortization cost to be written off every year would be
a.
RO 500
b.
RO 150
c.
RO 800
d.
RO 160
In the above case, assume that the employee wishes to leave the company after the end of three years, the amount to be written off in the third year would be
a.
RO 320
b.
RO 160
c.
RO 800
d.
RO 480
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