Vidyalelo
Commerce · Q312

Costing

Graduate and Post Graduate · Commerce · question 312

Q312

In costing of project, wages paid to workers for unproductive work at time of material shortage is termed as

A.
indirect wages
B.
health wages
C.
idle time wages
Answer
D.
shortage time wages

Answer: Option C

Solution

Answer: Option C
Solution:
In costing of project, wages paid to workers for unproductive work at time of material shortage is termed as idle time wages. The labour cost of normal idle time may be treated as an item of factory expenses and recovered as an indirect charge in case of indirect workers.