Calculate the labour turnover rate according to replacement method from the following:No. of workers on the payroll:-At the beginning of the month:500-At the end of the month:600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme.

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	4.55%
B	1.82%
C	6%
D	3%

Explanation:

Detailed explanation-1: -Replacement Rate Method: Labour turnover is determined by dividing the number of workers replaced during the month/year by the average number of workers employed during the month/year and multiplying that by 100.

Detailed explanation-2: -The Cost of Employee Turnover Is High According to peoplekeep.com, the average cost of replacing an hourly employee is $1, 500. For those in technical positions, it’s 100% to 150% of their salary.

Detailed explanation-3: -Labour turnover is a measure of the number of employees leaving/being recruited in a period of time expressed as a percentage of the total labour force.

Detailed explanation-4: -Example: If your company had an average of 50 employees for the month of May and in that same month, four employees left, then your average labour turnover calculation would be (4/50) x 100 = 8. So for the month of May, your company had an 8% labour turnover rate.

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