In cost accounting, Idle Time wages are usually charged to: MCQ with Answer and Explanation

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In cost accounting, Idle Time wages are usually charged to:

A. Profit & Loss Account (if abnormal)

B. Factory Overheads

C. Both B and C

D. Direct Labor Account

Answer: Option C

Solution (By JKSSB Mock Tests)

Normal idle time is charged to Factory Overheads, while abnormal idle time (e.g., strikes, power failure) is charged to the Costing P&L Account.

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

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Question #1

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If a machinery costing ₹80,000 is sold for ₹70,000 with accumulated depreciation ₹20,000, the profit/loss on sale is:

A. No profit no loss

B. Profit ₹10,000

C. Loss ₹10,000

D. Profit ₹30,000

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Correct Answer: Option B

Explanation:
Book value = 80,000 - 20,000 = 60,000. Sale price 70,000. Profit = 70,000 - 60,000 = ₹10,000.

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Question #2

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In the Balance Sheet, 'Share Application Money Pending Allotment' is shown as:

A. Share capital

B. Current liability

C. Non-current liability

D. Reserves and surplus

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Correct Answer: Option B

Explanation:
It is a liability until shares are allotted, and if allotment is due within 12 months, it's current.

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Question #3

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NFRA has jurisdiction over:

A. Only public sector units

B. Listed companies and large unlisted companies

C. All companies

D. Only banks

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Correct Answer: Option B

Explanation:
NFRA covers listed companies and such class of unlisted companies as prescribed.

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