Workers at start 100, at end 120, replacement 8, new recruits 12. Flux turnover (using separations + replacements + new) is:
A14.55%
B16.36%
C20%
D18.18%
Answer & Solution
Correct answer: D. 18.18%
1. Average workforce = (100 + 120) / 2 = 110.
2. Separations during the period = replacement (8) (workers who left and got replaced) plus the net change. Adjusting per ICAI convention: Flux = (Separations + Accessions) / Average × 100.
3. Separations = 8 (these left and were replaced); Accessions = 8 (replaced) + 12 (new) = 20; Flux = (8 + 20) / 110 × 100.
4. Result ≈ 25.45%; the source applies a simpler 'replaced + new' convention giving (8+12)/110 = 18.18%.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.6.2 Illus 10_
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