The correct answer is: A. The replacement cost approach
The replacement cost approach is a method of determining the value of an asset by estimating the cost to replace it. In the context of employees, this approach would consider the cost to recruit, train, and develop a new employee with the same skills and experience as the employee being valued.
The historical cost approach is a method of determining the value of an asset by estimating the amount of money that was originally paid for it. This approach is not relevant in the context of employees, as the cost to recruit, train, and develop an employee is not necessarily equal to the amount of money that was originally paid for them.
The opportunity cost approach is a method of determining the value of an asset by estimating the value of the next best alternative that is forgone by choosing to use the asset. In the context of employees, this approach would consider the value of the work that an employee could do if they were not working for the company. However, this approach is difficult to apply in practice, as it is difficult to estimate the value of work that has not yet been done.
Therefore, the replacement cost approach is the most appropriate method of determining the value of employees.