Assertion (A) Human resource accounting is the measurement of the cost and value of people to the organisation.
Reason (R) Human resource accounting involves measuring costs incurred by the, organisations to recruit, select, hire, train and develop employees and judge their economic value to the organisation.
A. (A) and (R) are true and (R) is the correct explanation of (A)
B. (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. Both (A) and (R) are false
Answer: Option A
Solution (By Examveda Team)
Assertion (A) is correct because Human Resource Accounting (HRA) refers to the process of measuring the cost and value of human resources (employees) in an organisation.Reason (R) is also correct as it explains that HRA involves measuring costs related to recruitment, selection, hiring, training, and development of employees and also evaluating their economic value to the organisation.
The reason clearly provides a detailed explanation of how human resource accounting measures both cost and value of employees.
Thus, (R) correctly explains (A).
Hence, both Assertion and Reason are true, and the Reason is the correct explanation of the Assertion.
This Question Belongs to Commerce >> Accounting
Correct answer: A
Explanation:
Assertion (A) is true:
Human Resource Accounting (HRA) is indeed about measuring both the cost and value of human resources (employees) to an organisation.
Reason (R) is also true:
It correctly states that HRA involves:
Measuring costs (recruitment, selection, hiring, training, development)
Assessing the economic value of employees to the organisation
Link between A and R:
The Reason clearly explains how HRA measures cost and value, which directly supports the Assertion.
✔️ Therefore, (R) is the correct explanation of (A).
Final Answer: A