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Accounting for labour-labour turnover

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for labour-labour turnover

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 27, 2015 at 7:32 am #239059
    Molly Sum
    Participant
    • Topics: 39
    • Replies: 53
    • ☆☆

    question 1
    a company had 500 workers at the start of a period, during the period,70 workers left the company for various reason and 46 new workers were employed.
    what is the labour turnover rate for the period ( to the nearest %)?

    my working : 500-70+46=476 ( 476 whether the total employed end of the year ?)
    46 / 500+476 / 2 = 9.426 ? correct answer is the 9%.
    but I don’t know the replacement cost correct should 70 or 46? please help.

    question 2
    a company employed 5700 employees at the end of a financial year, during the year 600 employees left the company and 360 were recruited.
    what was the rate of labour turnover in the year?

    my working: 5700-360+600=5940 for opening
    600 / 5700+5940/2 = 10.3%
    please explain the replacement costs correct is 600 or 360 ? my calculation just in order to get the correct answer as provided, kindly explain?

    thank you

    March 27, 2015 at 9:01 am #239081
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    The number replaced has to be the lower of the number who left and the number of new employees.

    In question 1, if only 46 new workers were employed then it means that only 46 of the leavers were replaced (if all 70 had been replaced the it would have meant that they would have to have employed at least 70 new workers).

    In question 2, the same logic applies – if only 360 new workers were recruited then only 360 of the leavers were replaced.

    April 3, 2015 at 4:21 pm #240046
    Molly Sum
    Participant
    • Topics: 39
    • Replies: 53
    • ☆☆

    hi sir,
    can you please correct me again for the above questions
    question 1
    500-70=430+46=476
    46/500+476/2=46/488=9.4262 ?
    question 2
    5940-600=5340+360=5700
    360/5940+5700/2=360/5820=6.1855 ?
    thank you

    April 4, 2015 at 6:49 am #240080
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Correct.

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    Posts
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