Costs of labour turnover include preventive costs and:
ABonus costs
BReplacement costs
CIdle time costs
DStandard costs
Answer & Solution
Correct answer: B. Replacement costs
1. Labour turnover cost has two broad categories per ICAI.
2. Preventive costs are those incurred to retain employees (welfare, training, morale).
3. Replacement costs are those incurred when an employee actually leaves and a new one is hired.
4. Hence the second category is replacement costs.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.6.3 ¶2_
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