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Costing Human Resources

A Guide for Personnel Practitioners

P.J. Dowling

This paper offers a methodology for costing routine human resource activities. It applies accounting techniques to the personnel function in order to evaluate, in financial terms, the decisions taken about people. The intention of such an approach is to examine the economic and financial consequences of human resource programs and so assist in controlling costs at the optimum level of activity. This topic has been covered in the literature, generally at a relatively simplistic level, and much of the material is not directly relevant to the Australian environment. This paper provides a practical model directly related to the Australian workplace which can be adapted to any specific organisational environment.

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