The formula for calculating human capital value added = Revenue

Question

The formula for calculating human capital value added = Revenue - (Operating Expense - (Compensation + Benefit Costs)) / Full-Time Head Count

Quizplus · Accepted Answer

This formula is correct for calculating human capital value added, which measures the contribution of employees to an organization's financial success. It subtracts the cost of compensation and benefits from operating expenses and divides the result by the number of full-time employees to determine the amount of revenue generated per employee.