Costing MCQ Questions and Solutions with Explanations | Commerce

Normal idle time cannot be avoided. The main reasons for the occurrence of normal idle time are as follows:
i. Time taken by workers to travel the distance between the main gate of factory and the place of their work.
ii.Time lost between the finish of one job and starting of next job.
iii. Time spent to overcome fatigue.
iv. Time spent to meet their personal needs like taking lunch, tea etc.

Cost of idle time arising due to non availability of raw material is charged to costing profit and loss account. The cost of idle facilities for reasons such as trade depression, shortage of demand, etc. should be written off to Costing Profit and Loss Account.

Wage sheet is prepared by payroll department. The payroll or wage sheet is a consolidated list of workers, which shows the gross deductions and net wages payable to them.

Time and motion study is conducted by engineering department. It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods.

Under Gantts task and bonus plan no bonus is payable to a worker if his efficiency is less than 100%. If a worker takes more time than the standard time to complete the task (i.e., his efficiency is below 100%), he is given wages for the time taken by him and if a worker takes the standard time to perform the task (i.e., efficiency is 100%), he is given wages for the standard time and a bonus of 20% on the wages earned.

When standard output is 10 units per hour and actual output is 12 units per hour, the efficiency is 120%.

Bonus under Halsey plan is paid at 50% of time saved. The usual bonus share paid to the worker is 50% of the time saved multiplied by the rate per hour (time-rate).

Halsey premium plan is individual incentive scheme. Under Halsey plan minimum wages are guaranteed to every worker. A standard time is fixed for the workers. If the workers finish the work before standard time they are given bonus.

Labour cost is the second element of cost. Labour cost is a second major element of cost. Under the present political conditions with a restive labour in organised industry, it is very difficult to reduce labour cost.

Separation Method
Labour Turnover = No. of workers left or separated during a period / Average number of workers on role during that period x 100
Replacement Method
Labour Turnover = No. of workers replaced during a period / Average number of workers on role during that period x 100
Flux Method
Labour Turnover = (No.of workers separated in a period + No. of workers replaced in the same period) / Average number of workers on role during that period x 100

Note : Average No.of. Workers = (No. of workers at the beginning of the period + No. of workers at the end of the period) / 2