CMA Intermediate · Cost Accounting · Employee Costs
Which of the following best describes idle time in the context of employee cost?
Idle time is paid working time during which workers produce nothing, for example due to machine breakdown, power failure or shortage of materials. Overtime, rework on rejected goods and training time are different concepts and are not idle time.
- ATime during which workers are paid but do no productive work because of factors such as machine breakdown or power failureCorrect
- BTime spent by workers in producing goods that are later rejected
- CTime worked beyond normal hours for which extra premium is paid
- DTime taken by a new worker to learn the job at lower speed
Explanation
Idle time is paid time with no output, caused by breakdown, power failure, lack of material and similar reasons. Time on rejected goods is rework or scrap related, extra hours are overtime, and learning is a training matter.
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