PPT - Labour Turnover B Com Notes | EduRev

Cost Accounting

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B Com : PPT - Labour Turnover B Com Notes | EduRev

 Page 1


LABOUR TURNOVER
• A measure of the proportion of people leaving
relative to the average number of people
employed over a period of time. This rate
should be kept as low as possible.
Management might wish to monitor labour
turnover so that control measures might be
considered if turnover rate is too high since
business is losing experience and valuable
staff at a fast rate.
Page 2


LABOUR TURNOVER
• A measure of the proportion of people leaving
relative to the average number of people
employed over a period of time. This rate
should be kept as low as possible.
Management might wish to monitor labour
turnover so that control measures might be
considered if turnover rate is too high since
business is losing experience and valuable
staff at a fast rate.
Formula to calculate Labour Turnover
Labour turnover is calculated for any given
period by using the following formula:
Page 3


LABOUR TURNOVER
• A measure of the proportion of people leaving
relative to the average number of people
employed over a period of time. This rate
should be kept as low as possible.
Management might wish to monitor labour
turnover so that control measures might be
considered if turnover rate is too high since
business is losing experience and valuable
staff at a fast rate.
Formula to calculate Labour Turnover
Labour turnover is calculated for any given
period by using the following formula:
Causes of Labour Turnover
Page 4


LABOUR TURNOVER
• A measure of the proportion of people leaving
relative to the average number of people
employed over a period of time. This rate
should be kept as low as possible.
Management might wish to monitor labour
turnover so that control measures might be
considered if turnover rate is too high since
business is losing experience and valuable
staff at a fast rate.
Formula to calculate Labour Turnover
Labour turnover is calculated for any given
period by using the following formula:
Causes of Labour Turnover Effects of Labour Turnover
• Interruptions in the continuous process of production which
results that overall production is reduced.
• New workers take time to become efficient. Hence lower
efficiency workers increase the cost of production.
• Selection and training cost of new workers recruited to
replace the workers who have left increase the cost of
production.
• More scrap, rejects and defectives which increases the cost of
production.
• Cause more depreciation on tools and machinery.
• Accidents may also happen very often and hamper the
production process and organizational harmony.
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