First-Generation Accounting Systems for Human Resource Costs

Abstract

During the late 1960s, business firms began to apply the concepts of human resource accounting to their own operations. A few organizations developed systems of accounting for their investments in human resources, while others began to account for the replacement cost of their human resources. This chapter surveys selected cases of these initial attempts to develop systems of accounting for human resource costs and examines the intended use of these systems in managing human resources. These pioneering studies are significant not only for historical reasons but also to illustrate the applications of human resource cost accounting that were initially envisioned. The next chapter discusses more recent attempts to use human resource accounting.