The labour turnover rates for the quarter ended 30th June, 2024 are computed as 14%, 8% and 6% under Flux method, Replacement method and Separation…
CA Intermediate · Cost and Management Accounting · RTP · September 2024
The labour turnover rates for the quarter ended 30th June, 2024 are computed as 14%, 8% and 6% under Flux method, Replacement method and Separation method respectively. If the number of workers replaced during 1st quarter of the financial year 2024-25 is 36, COMPUTE the following: (i) The number of workers recruited and joined; and (ii) The number of workers left and discharged.
Suggested Answer and Working Notes:
Labour Turnover Rate (Replacement method) = No. of workers replaced Average No. of workers Or, 8/100 = 36 / Average No. of workers Or, Average No. of workers = 450 Labour Turnover Rate (Separation method) = No. of workers separated Average No. of workers Or, 6/100 = No. of workers separated / 450 Or, No. of workers separated = 27 Labour Turnover Rate (Flux Method) = No. of Separations + No. of accession (Joinings) Average No. of workers Or, 14/100 = (27 + No. of accessions (Joinings)) / 450 Or, 100 (27 + No. of Accessions) = 6,300 Or, No. of Accessions = 36 (i) The No. of workers recruited and Joined = 36 (ii) The No. of workers left and discharged = 27
Topics: Employee Cost & Direct Expenses
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