COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Pay roll is prepared to reveal gross wages and various deductions
|
|
|
Piece wages are payment by results
|
|
|
Idle time is spent by the workers on their jobs
|
|
|
Labor turnover is due to poor working conditions of organizations
|
Detailed explanation-1: -Idle time is paid time that an employee, or machine, is unproductive due to factors that can either be controlled or uncontrolled by management. It normally applies to full-time workers rather than consultants, who typically have to bill for every hour of their time.
Detailed explanation-2: -Following are some of the examples of normal idle time: (i) The time taken in going from the factory gate to the department in which the worker is to work, and then again the time taken in coming from the department to the factory gate at the end of the day. (ii) The time taken in picking up the work for the day.
Detailed explanation-3: -There are two main types of idle time: Planned idle time and unplanned idle time.
Detailed explanation-4: -Abnormal idle time arises due to power failure, breakdown of machinery, non supply of raw material in time, delay in previous process, strikes and accidents etc.