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E Poster Cma

The document outlines labor turnover, which measures the percentage change in an organization's workforce due to various factors like resignations and dismissals, affecting productivity and costs. It presents four methods for calculating labor turnover: Separation Method, Flux Method, Replacement Method, and Labor Turnover Method. Effective management of labor turnover is essential for maintaining efficiency and minimizing recruitment expenses.

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Shraddha Agrawal
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7 views1 page

E Poster Cma

The document outlines labor turnover, which measures the percentage change in an organization's workforce due to various factors like resignations and dismissals, affecting productivity and costs. It presents four methods for calculating labor turnover: Separation Method, Flux Method, Replacement Method, and Labor Turnover Method. Effective management of labor turnover is essential for maintaining efficiency and minimizing recruitment expenses.

Uploaded by

Shraddha Agrawal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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COST MANAGEMENT ACCOUNTING

LABOR INCLUSIVE
FORMULAS

LABOR TURNOVER
The labor turnover denotes the percentage change in
labor force of an organization. It can result from
resignations, retirements, dismissals, or transfers and
impacts workforce stability, productivity, and operational
costs. Managing labor turnover effectively helps maintain
efficiency and reduce recruitment expenses.

OBJECTIVES
01 SEPARATION
METHOD Optimization

Number of employees Productivity


left during a period /
Average number of Efficiency
employees during a
period x 100
Management

02 FLUX METHOD
Number of additions + Separation during a
period / Average number of employees x
100

03 REPLACEMENT 04 LABOUR
METHOD TURNOVER
Number of additions +
Number of employees Separation during a
replaced during a period ÷ 2
period / Average / Average number of
number of employees employees during a
during a period x 100 period x 100

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