What is idle time in cost accounting explain the cause leading to idle time and its treatment in cost accounts?
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Explanation:
The important causes for the abnormal time are given below:
(a) Temporary lack of work,
(b) Machine breakdown,
(c) Power failures,
(d) Shortage of raw materials,
(e) Waiting for tools,
(f) Waiting for jobs due to unplanned production,
(g) Stoppage of work due to managerial policy decisions,
(h) Strikes and lockouts, and
(i) Floods, earthquakes, etc.
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