Calculation process of cost of idle time
Describe the calculation process of cost of idle time?
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- If the idle time payment is controllable and normal: it must be categories as overheads - If the idle time payment is uncontrollable and normal: the labor rates must be suitably modified - If the idle time payment is uncontrollable and abnormal: it must be considered as a part of manufacturing cost however must be written off to loss account and costing profit.
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