Idle time is the time during which no production is carried-out because the worker remains idle but are paid. It can be normal or abnormal. LIST OUT…
CA Intermediate · Cost and Management Accounting · MTP · January 2025
Idle time is the time during which no production is carried-out because the worker remains idle but are paid. It can be normal or abnormal. LIST OUT some of the causes/examples of normal and abnormal idle time.
Suggested Answer and Working Notes:
Causes/examples of normal idle time: 1. The time lost between factory gate and the place of work. 2. The interval between one job and another. 3. The setting up time for the machine. 4. Normal rest time, break for lunch etc. Causes/examples of abnormal idle time: 1. Lack of coordination. 2. Power failure, Breakdown of machines. 3. Non-availability of raw materials, strikes, lockouts, poor supervision, fire, flood etc.
Topics: Employee Cost & Direct Expenses
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