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

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In cost accounting, 'Idle Time' means:

A. Standard time

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

C. Overtime worked

D. Time spent on maintenance

Answer: Option B

Solution (By JKSSB Mock Tests)

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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Question #1

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In a common size income statement, all items are expressed as a percentage of:

A. Net profit

B. Gross profit

C. Total assets

D. Revenue from operations (net sales)

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Correct Answer: Option D

Explanation:
Common size income statement base is net sales/revenue from operations.

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Question #2

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Carriage inwards is shown on the:

A. Debit side of Trading Account

B. Credit side of P&L Account

C. Debit side of P&L Account

D. Asset side of Balance Sheet

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Correct Answer: Option A

Explanation:
Carriage inwards is the transportation cost of bringing raw materials/purchases to the factory, hence it's a direct expense charged to the Trading Account.

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Question #3

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A partner who does not actively participate in the business but is liable to third parties is called:

A. Secret partner

B. Partner by estoppel

C. Sleeping partner

D. Nominal partner

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Correct Answer: Option C

Explanation:
Sleeping or dormant partner contributes capital but does not take part in management; still has unlimited liability.

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

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