Difference between normal idle time and abnormal idle time
Answers
Idle time may be normal or abnormal. Normal idle time is caused by factors beyond the control of management. These causes are really part of the normal production cycle. In cost accounting, the cost of such idle time is included as either direct labor or manufacturing overhead and is part of the total product cost.
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Normal idle time and abnormal idle time
Explanation:
Idle time is the time when employees and workers remain unproductive in the organization but they are still paid for it by the organization. It may be normal idle time or abnormal idle time.
Normal idle time- Normal idle time are beyond the control of management and hence they can't be avoided such as time taken to move from one job to another, waiting time for material, waiting time to receive instruction. such cost can't be avoided and hence charge to factory overhead.
Abnormal idle time- These cost can be minimized as they arise to ignorance of management such as power failure, shortage of raw material, frequent breakdown of machines etc. if management takes proactive approach they can avoid such cost , still if they occur then they are charged to Profit and loss account.
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Normal idle time and abnormal idle time
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