Which of the following is a likely cost of high labour turnover?
Answer and explanation
Correct answer: C. Recruitment and training costs for replacement staff
- Step 1: High labour turnover means more leavers and more replacements.
- Step 2: The costs include advertising, selection, induction, training and lower efficiency in the early period.
- Step 3: The remaining options suggest benefits that are not typical.
Answer
Recruitment and training costs for replacement staff.
Why not the others: This is not a general result and is typically outweighed by recruitment and training costs. Productivity usually drops while new staff learn the job. Scrap and rework tend to increase with inexperienced staff.
Practise more Material, labour and overhead costs.
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