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Cost of idle time arising due to non availability of raw material is _______.

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Cost of idle time arising due to non availability of raw material is _______.
  • Acharged to costing profit and loss account
  • Bcharged to financial profit and loss account
  • Ccharged to factory overhead
  • Drecovered by inflating the wage rate
Correct answer: A
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charged to costing profit and loss account

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.