ECONOMICS

COST ACCOUNTING

INTRODUCTION TO COST ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Break-down of machinery, strike, lock-outs come under ____ idle time
A
Idle
B
Not idle
C
Abnormal
D
Normal
Explanation: 

Detailed explanation-1: -Machine Breakdown is Abnormal idle time. Waiting for tools is normal idle time. Strike and lock out time is abnormal idle time. Overtime premium at normal rate is treated as direct labour.

Detailed explanation-2: -Some examples of abnormal idle time include worker strikes, prolonged power outages, and machine breakdowns due to poor maintenance procedures. Workers going on strike and picketing is abnormal idle time as it could be controlledcou by management.

Detailed explanation-3: -Unplanned idle time, also known as abnormal idle time, arises from things like a lack of raw materials, waiting for other machines to complete their processes, and micro stops (which occur when a machine stops working for a short period of time due to a problem).

Detailed explanation-4: -Following are some of the examples of normal idle time: (ii) The time taken in picking up the work for the day. (iii) The time which elapses between the completion of one job and the commencement of the next job. ADVERTISEMENTS: (iv) The time taken for personal needs and tea breaks.

There is 1 question to complete.