Following information is given of a newly setup organization for the year ended on 31st March, 2025: Number of workers replaced during the period 78…
CA Intermediate · Cost and Management Accounting · PYQS · May 2025
Following information is given of a newly setup organization for the year ended on 31st March, 2025: Number of workers replaced during the period 78 Number of workers left and discharged during the period 28 Employee turnover rates using separation method 3.5% Required: Compute the employee turnover rates using: (i) Replacement method and (2 Marks) (ii) Flux method (2 Marks)
Suggested Answer and Working Notes:
Employee turnover rate (Separation method) = No. of Separations (S) / Average number of workers on roll × 100 3.5 / 100 = 28 / Average number of workers on roll Average number of workers on roll = 28×100 / 3.5 = 800 (i) Employee Turnover rate using Replacement method = No. of replacements / Average number of workers on roll × 100 = 78×100 / 800 = 9.75% (ii) Employee turnover rate (Flux method) = (Number of employees separated + Number of employees replaced during the period) / Average number of employees during the period on roll × 100 = (28+78) / 800 x 100 = 13.25%
Topics: Employee Cost & Direct Expenses
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