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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for labour
A company had 30 direct production employees at the beginning of lasy year and 20 direct production employees at the end of the year.
During the year a total of 15 direct production employees had left the company to work for a local competitor. What is the labour turnover rate for last year?
Surely you have an answer in the same book in which you found the question?
You should use this forum to ask about what it is in the answer that you don’t understand – then I will try and help.
Since 15 left, if nobody had been replaced, then there would be only 15 at the end of the year. Since there were in fact 20 at the end of the year it must mean that 5 had been replaced.
The average number of employees is (30 + 20)/2 = 25
So the turnover rate is 5/25 = 20%
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