Multiple choice

Directions: Choose the correct option for the given question:

Cost of abnormal idle time is transferred to

  1. capital account

  2. idle time account

  3. abnormal idle time account

  4. costing profit and loss account

  5. process account
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Abnormal idle time is caused by factors outside the normal course of business, such as strikes or power failures. Its cost is treated as a period cost and transferred to the costing profit and loss account.

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