Abstract
It is a big problem how to measure human capital accurately, which has puzzled economists for a long time. There is not an effective way to calculate the cost of human capital until now. In recent years, activity based-costing (ABC) and economic value added (EVA) have been well developed and applied in many industries in western countries. They are advanced theory of cost calculation and may provide us useful tools to measure human capital. The paper examined the cost characteristics of human capital with the theory of ABC. Key activities in the process of human capital’s development were defined. Resource costs were allocated accurately and the procedure of human capital’s calculation was proposed. It provides us a new idea to measure and manage human capital and will do some help in further studies.
Highlights
With twenty year’s reform and opening-up, China has made a lot of progress in economy and technology
We find that general education capital and specialty capital are both education capital from analyzing the characteristic of these parts
The paper used the theory of activity based-costing (ABC) to analyze the cost characteristics of human capital
Summary
With twenty year’s reform and opening-up, China has made a lot of progress in economy and technology. In the time of new economy, the development of science, technology, and capital accumulation urgently require innovations in the management of human resource. Until now there is not significant progress in the measurement of human capital. There are no effective methods to calculate human capital stock This has influenced the research on the relationship between human capital and economic growth. How to measure human capital more accurately? How to reflect the real value of human capital and well manage it? Human capital was effectively analyzed with the principles of activity based costing (ABC). Human capital stock was well calculated and a new idea of management was brought up
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