The correct answer is: C. Both of the above.
Labour turnover costs can be categorised into two types: preventive costs and replacement costs.
Preventive costs are costs that are incurred in order to reduce the rate of labour turnover. These costs can include things like providing training and development opportunities, offering competitive salaries and benefits, and creating a positive work environment.
Replacement costs are costs that are incurred when a worker leaves the company and needs to be replaced. These costs can include things like the cost of advertising for a new worker, the cost of interviewing and hiring a new worker, and the cost of training a new worker.
Machine costs are not included in labour turnover costs. Machine costs are costs that are incurred in order to purchase and maintain machines. These costs are not directly related to the rate of labour turnover.
Here are some additional details about each type of labour turnover cost:
-
Preventive costs: Preventive costs are costs that are incurred in order to reduce the rate of labour turnover. These costs can include things like providing training and development opportunities, offering competitive salaries and benefits, and creating a positive work environment.
-
Replacement costs: Replacement costs are costs that are incurred when a worker leaves the company and needs to be replaced. These costs can include things like the cost of advertising for a new worker, the cost of interviewing and hiring a new worker, and the cost of training a new worker.
-
Machine costs: Machine costs are costs that are incurred in order to purchase and maintain machines. These costs are not directly related to the rate of labour turnover.