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Idle time

Idle time is paid time during which employees are not producing output. It can arise from waiting for materials, machine breakdown, scheduling or normal rest arrangements. Identify whether it is normal, abnormal and controllable before assigning or interpreting its cost. General normal idle time is commonly treated as indirect production cost rather than charged indiscriminately to one job. An apparent labour-efficiency problem may have a cause outside the workforce’s control.

Worked example

A worker is paid for 40 hours at $18 but is idle for five. Idle-time pay is $90; productive basic pay is $630.

Common mistake

Do not assume all paid hours are productive or blame employees automatically for delays caused by missing materials or equipment failure.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA MA Direct September 2026–June 2027
FIA FMA Direct September 2026–June 2027