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For Paper MA (was F2) then idle time is not a direct cost – it is an indirect cost.
However, for Paper FM this is not really a relevant question. How idle time is treated depends on why it occurs and the nature of the question – it is relevant costing, is it variance analysis, or what? The treatment depends on the nature of the question.
If you refer to a specific past exam question or a question in the BPP Revision Kit then I will give you a specific answer.
I ask you yet again – have you watched my free lectures for Paper PM or not? You cannot possibly hope to pass the exam by simply attempting questions. Attempting questions is vital, but you need to have studied first – either by watching my lectures or by working through a Study Text from one of the ACCA approved publishers.
Thanks for your reply sir.
I was wondering if idle time is a direct labour (variable costs) or fixed costs in throughput accounting just now. I think I didn’t understand it correctly and got confused when I asked this question.
But now, I realised that direct labour (idle time) is assumed to be fixed costs in throughput accounting since you still have to pay your workers even if they are sitting idle. It is not really a pure variable costs. Did I understand it correctly?
And, yes. I always study BPP text first, then I will watch your lectures on Youtube for further understanding. It really helps me to consolidate what I had read and remember better rather than just reading the text only. After that, I will start practicing questions. That’s what I always did.
Your lectures are really helpful. It had helped me to pass my previous papers. Thank you so much sir.
Yes – with regard to throughput accounting you have understood correctly 🙂
Why are you watching our lectures on YouTube, because you can access them directly from this website 🙂
Thanks!
I always watch your lectures on YouTube and not from this website because I discovered opentuition through google and have been watching your lectures through YouTube since then. It has become a habit for me to watch it through YouTube.
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