The Meaning of Labor Turnover In Cost Accounting.
Labor turn over is the percentage change of the labor force of an organisation. It is common feature in any concern that some employees leave the concern and others join in it. Workers change the job for personal betterment or for better working conditions or due to compulsion. Labor turn over is the ratio of the number of persons leaving in a period to the average number employed.
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As high labor turn over is not desirable it reduces the labor productive and increases the cost. Hence, it should be kept at minimum level.