In case of power failure in the factory, the cost of Idle time is to be recorded in :
In Cost Accounting, idle time caused by a factory power failure, machinery breakdown, or strike is classified as abnormal idle time. Because abnormal costs should not…
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In case of power failure in the factory, the cost of Idle time is to be recorded in :
Answer and explanation
Correct answer C
In Cost Accounting, idle time caused by a factory power failure, machinery breakdown, or strike is classified as abnormal idle time. Because abnormal costs should not distort product cost, the wage cost of abnormal idle time is charged directly to the Costing Profit & Loss Account.
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