CA Inter P4 · Chapter 3 · Question 5 of 11
A factory had 760 workers at the beginning of the year and 840 at the end. During the year 48 workers left and 128 workers joined, of whom 40 were replacements. The labour turnover rate under the separation method is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 6%
Explanation
Average number of workers = (760 + 840) / 2 = 800. Separation rate = separations / average workers x 100 = 48 / 800 x 100 = 6%. Using closing workers (840) as the base is incorrect.
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