25th November 2019

study

11

What are the main causes of an avoidable idle time in production distribution?

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This unproductive time is unnecessary in the process and often covers an extended period of time. Abnormal, extended unproductive time may be caused by factors such as a workers' strike or lockout, avoidable machine breakdowns, unavailability of raw materials and supplies, extended power failure, etc.

Also asked, what is the meaning of idle time?

What is 'Idle Time' Idle time is unproductive time on the part of employees or machines caused by management or as a result of factors beyond their control. Idle time is the time associated with waiting, or when a piece of machinery is not being used but could be.

What is Labour idle time?

The difference between the number of hours budgeted for work and the number of paid hours not spent working (idle time). For example, if employees of a company were budgeted to make products for 8,000 hours, but only did work for 7,800 hours, then 200 hours were spent in idle time.

Is idle time direct or indirect?

Overtime premium is the amount that is paid, for the overtime worked, in excess of the normal wage rate. Like idle time, overtime premium is also treated as indirect labor cost and included in manufacturing overhead cost. For example, a worker normally works for 48 hours per week @ $8 per hour.

1

What is the danger level of stock?

But if for any reason, stock comes down below the minimum level, it is called danger level. When the stock reaches danger level, it is necessary to take urgent action on the part of the management for immediate replenishment of stock to prevent stock-out situation.

2

What is a hybrid costing system for accounting?

A hybrid costing system is useful when a production facility handles groups of products in batches and charges the cost of materials to those batches (as in the case in a job costing environment), while also accumulating labor and overhead costs at the departmental or work center level and allocating these costs at the

3

What is a backflush costing system?

Backflush costing is a product costing system generally used in a just-in-time (JIT) inventory environment. Backflush costing delays the costing process until the production of goods is completed. Costs are then "flushed" back at the end of the production run and assigned to the goods.

4

What is an operation costing system?

Operation costing is a mix of job costing and process costing, and is used in either of the following situations: A product initially uses different raw materials, and is then finished using a common process that is the same for a group of products; or.

5

What is meant by abnormal gain?

Abnormal gains are usually gains of a non-recurring nature. For example, an unrealised gain from currency hedging would be written back as an abnormal because it is not congruent with the normal operations of the business.

6

What are some examples of operating expenses?

Operating expenses are the costs a company incurs that are not related to the production of a product. These expenses include items like payroll, rent, office supplies, utilities, marketing, insurance and taxes. Operating expenses are essentially the costs to keep the business running.

7

What is an example of an expense?

Examples of office-related operating expenses

Accounting expenditures.
Depreciation of fixed assets assigned to non-production areas.
Insurance costs.
Legal fees.
Office supplies.
Property taxes.
Rent costs for non-production facilities.
Repair costs for non-production facilities.

8

What is not included in operating expenses?

An expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production. Operating expenses include such things as payroll, sales commissions, employee benefits and pension contributions, transportation and travel, amortization and depreciation, rent, repairs, and taxes.

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What is not an operating expense?

A non-operating expense is an expense incurred by a business that's unrelated to its core operations. The most common types of non-operating expenses relate to depreciation, amortization, interest charges or other costs of borrowing.

10

What is considered a non operating expense?

A non-operating expense is an expense incurred by an organization that does not relate to its main activity. These expenses are usually stated on the income statement after the results from continuing operations. Lawsuit settlement expense. Loss on disposition of assets. Obsolete inventory charges.

11

Is Depreciation a non operating expense?

Since the asset is part of normal business operations, depreciation is considered an operating expense. However, depreciation is one of the few expenses for which there is no associated outgoing cash flow.

12

What are other expenses and losses?

Operating expenses include expense accounts that are necessary to earn operating revenues. Selling, General and Administrative Expenses include the following accounts. Nonoperating expenses and losses include expense and loss accounts that are due to the transactions other than the primary operations of the company.

13

Is an expense a loss?

An expense is a cost used up in earning revenues in a company's main operations. Expenses also include costs used up during the accounting period such as interest expense, insurance expense, and depreciation expense. A loss is associated with a "peripheral" or "incidental" transaction.

14

What is included in other expenses?

(Accounting: Financial statements, Income statement) Other expenses are expenses that do not relate to a company's main business. As well as operating costs, the company needs to consider other expenses including interest expense and losses from disposing of fixed assets.

15

What is included in other operating expenses?

Other operating expenses, also known as overhead expenses, is the amount which generally does not depend on sales or production quantities. These include, for example, marketing expenses, rent and utilities, office expenses, operating leases, IT (software services) and other fixed costs.

16

What is included in administrative expenses?

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. Salaries of senior executives and costs of general services such as accounting are examples of administrative expenses.

17

What are the general and administrative expenses?

A: In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations and administer its business, but these costs are not directly attributable to the production of goods and services.

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What is the difference between operating and administrative expenses?

The differences between an operational expense and an administrative expense is that operational expenses cover the costs to produce products and services for clients and administrative expenses cover overall general expenses that are not necessarily tied to production or a specific department within the company.

19

What is the difference between operating and nonoperating income?

Non-operating income, in accounting and finance, is gains or losses from sources not related to the typical activities of the business or organization. Non-operating income can include gains or losses from investments, property or asset sales, currency exchange, and other atypical gains or losses.

20

What are the operating expenses?

Operating expenses are the costs associated with a company's main operating activities and which are reported on its income statement. For example, a retailer's main operating activities are the buying and selling of merchandise or goods. Therefore, its operating expenses will include: Cost of goods sold.

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