ACCA MA · Chapter 5 · Question 8 of 10
Which of the following is a preventive cost of labour turnover?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Cost of improving working conditions and staff welfare schemes
Explanation
Preventive costs are spent to reduce the number of staff leaving, for example better working conditions, welfare, pension schemes and career development. Advertising, training new staff and lost output are replacement costs that arise after employees have left.
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