How is the labour turnover rate calculated?
AJoiners divided by total payroll cost
BLeavers divided by average headcount
CIdle hours divided by paid hours
DAbsent days divided by working days
Answer & Solution
Correct answer: B. Leavers divided by average headcount
The rate compares the number who left during the year with the average of opening and closing headcount.
Keep practising Employee Cost
Browse all Employee Cost questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
An Improshare standard identifies the expected number of what?Profit sharing payments often depend on the company's:Improshare stands for:A Scanlon plan incentive uses the ratio of labour cost to:Gainsharing differs from profit sharing as it measures:Gainsharing returns what to employees?Perks are benefits that are mostly:Exchanging cash wages for another benefit is called salary: