In cost accounting, 'Idle Time' means: MCQ with Answer and Explanation

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In cost accounting, 'Idle Time' means:

A. Time for which workers are paid but no production occurs

B. Overtime worked

C. Standard time

D. Time spent on maintenance

Answer: Option A

Solution (By JKExamLibrary)

Idle time is unproductive time for which wages are paid.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

Under the straight-line method of depreciation, the depreciation amount:

A. Decreases every year

B. Remains constant every year

C. Increases every year

D. Is based on usage

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Correct Answer: Option B

Explanation:
Straight-line method charges equal amount of depreciation each year over the useful life of the asset.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

A debit balance in a personal account of a creditor indicates:

A. Amount payable to him

B. He has become debtor

C. Both B and C

D. Amount receivable from him

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Correct Answer: Option C

Explanation:
A creditor account with debit balance means the firm has paid excess or he owes money, so he is a debtor.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

A 'Clean Report' issued by an auditor is also known as an:

A. Disclaimer of Opinion

B. Qualified Opinion

C. Adverse Opinion

D. Unqualified Opinion

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Correct Answer: Option D

Explanation:
An unqualified opinion indicates the auditor found the financial statements to be free from material misstatements and in accordance with GAAP.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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