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Labour Costing

In this q-4, separation rate is asked and replacements of 30 workers are there. So in flux method, can we assume that those 30 were replaced out of 990 and should not be added separately while calculating flux rate to reach separations? Is this assumption correct? In exams, should we mention this in any note for making such assumption?

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Neha Gupta

Neha Gupta

CA Inter

4K+

06-Aug-20

48

Answers (1)

In the given solution, the employee replacements were added in both separation as well as flux methods. So, If you want to consider them as a part of the 990 employees at the beginning of the period do write a note about it and have the same assumption for both separation as well as flux methods. Do not take separate assumptions for each method.


Madhuri Veluri

Madhuri Veluri

CA Inter

2K+

08-Aug-20

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