As we discussed in a previous article, Implementing Slowly Changing Dimensions (SCDs) in Data Warehouses, there are three main types of slowly changing dimensions, such as Type 1, Type 2, and Type 3. Out of these Type 1 is the simple dimension where you will simply maintain only the latest version of the attribute. For example, if the employee got promoted to Senior Software Engineer from Software Engineer, you will simply overwrite the existing value to the new value so that the historical aspect is lost.
Type 2 Slowly Changing Dimensions are used to track historical data in a data warehouse. This is the most common approach in dimension. This article uses a sample database of AdventureworksDW which is the sample database for the data warehouse.
Click through for one way to compare, one which you could build using dynamic SQL.