About this document
Understanding Human Capital Investment by Umar Ashraf is a document available to read on EtoBox.
The document discusses human capital investments made by companies. It provides an example where a $100 utility bill in September resulted in a loss, while a $100 purchase of computing equipment in October resulted in a breakeven. This is because the utility bill was treated as an expense, while the equipment was treated as an asset. Treating expenditures as investments instead of expenses by capitalizing them affects profit/loss. It warns against managers thinking of human capital investments as sunk costs
- Author
- Umar Ashraf
- Language
- EN