Page 14 - Cost Accounting - Ready Reckoner

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Idle Time:

 Idle time is unproductive hours. Idle time can be avoidable and unavoidable.
 Wages paid for unavoidable idle time is charged to product and wages paid for
avoidable idle time is charged to Costing P&L A/c.

Overtime:

 Overtime is the excess time worked to complete
the job. Overtime wages will be at a higher rate
than the basic rate.
 Along with basic wages, certain allowances also are
given to labourers.
Eg. Dearness Allowance.

Labour Turnover:

Labour turnover in the movement of labour force in an organization during a
specified period measured by 4 methods.

There are several causes for labour turnover which can be classified into
avoidable and unavoidable causes.

Eg. Death of a worker, illness, low pay and allowances, unsatisfactory working
conditions, etc.