Page 16 - Cost Accounting - Ready Reckoner

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4. Accessions Method (or) Additions Method:

. + . + .
= x 100
.

 Effects of Labour Turnover results in increased cost in the form of settlement
cost, recruitment cost, training cost, loss of sales due to non-productive

(inexperienced) labour hours.

 Labour Turnover of an organisation in comparison with industry, will reflect if

the organisation is following a liberal or a rigid labour policy.

 CAS – 7 (Cost Accounting Standard) lists out the inclusions and exclusions in
labour cost for accounting purposes.