The labour turnover rates for the quarter ended 31 st March, 2026 are computed as 12%, 6% and 4% under Flux method, Replacement method and…

CA Intermediate · Cost and Management Accounting · PYQS · May 2026
The labour turnover rates for the quarter ended 31 st March, 2026 are computed as 12%, 6% and 4% under Flux method, Replacement method and Separation method respectively. The number of workers replaced during that quarter is 54. You are required to ascertain - (i) Average number of workers on roll for the quarter (ii) Number of workers recruited and joined (iii) Number of workers left and discharged

Suggested Answer and Working Notes:

(b) Working Note: (i) Average number of workers on roll (for the quarter): Employee Turnover rate using Replacement method = No. of replacements / Average number of workers on roll ×100 Or, 6 / 100 = 54 / Average number of workers on roll Or, Average number of workers on roll = 54×100 / 6 = 900 (ii) Number of workers recruited and joined: Employee turnover rate (Flux method) = No. of Separations (S) + No. of Accessions (A) / Average number of workers on roll Or, 12 / 100 = 36*+A / 900 Or, A = 10,800 - 36 = 72 No. of workers recruited and joined 72. (iii) Number of workers left and discharged: Employee turnover rate (Separation method) = No. of Separations (S) / Average number of workers on roll × 100 4 / 100 = S / 900 Or, S = 36 Hence, number of workers left and discharged comes to 36.

Topics: Employee Cost & Direct Expenses

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