Q102
Cost of idle time arising due to non availability of raw material is _______.
A.
charged to costing profit and loss account
AnswerB.
charged to financial profit and loss account
C.
charged to factory overhead
D.
recovered by inflating the wage rate
Answer: Option A
Solution
Answer: Option A
Solution:
Cost of idle time arising due to non availability of raw material is charged to costing profit and loss account. The cost of idle facilities for reasons such as trade depression, shortage of demand, etc. should be written off to Costing Profit and Loss Account.