How Should Idle Time Be Accounted For

question 13

Multiple Choice

How should idle time be accounted for?

• A)It should be recorded along with the reason for it,and charged to Factory Overhead.
• B)It should be charged to the job from which the employee took a break.
• C)It should be documented and the employee should not be paid for that time.
• D)It should be allocated to the various manufacturing departments and the supervisors should decide how to handle it.

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Definitions:

Agency Costs

Expenses incurred due to conflicts of interest between shareholders and management, typically including monitoring, contracting, and opportunity costs.

Spot Checks

Random inspections or audits conducted without prior notice to ensure compliance or quality.

Employee Work

The tasks and duties performed by an individual employed by an organization.

Agency Costs

The costs associated with resolving conflicts of interest between stakeholders in a corporation, typically between management and shareholders.