Labour Turnover Rate

[emahadz]

Hello,

I hope someone can help. I am very confused as to the definition of separation in the equation for the labour turnover rate.

Question 35 (Chapter: Cost Accounting Techniques) in the Question Bank state that the no of separations is number of employees at the end of the year minus the number of employees at the beginning of the year.

However, my understanding of separations are the terminations, lay off or the quitting of employees. This goes against the logic of the formula above.

Please can someone help explain?

TQ.

[hariharm]

Hi TQ,

I have not seen the question bank itself, but if you are interpreting it correctly, then I can see why you could be confused.

In my opinion, no. of separations = no. of employees at the beginning + no. of addtions(new employees) - no. of employees at the end.