Meaning and Definition of Idle Time In Cost Accounting.
Generally idle time means that time for which the employer pays, but from which he obtains no production. Otherwise it is the difference between the time for which workers are paid but the workers do not work. So it is a loss to the organisation. It can be minimized but, cannot be controlled during idle time, the workers remain due and contribute nothing towards production. It is the difference between actual hour and actual hour worked. There are two types of idle times:
- Normal idle time: The normal idle time is that idle time which cannot be fully avoided but effective effort should be made to reduce it.
- Abnormal idle time: Abnormal idle time arises due to various causes which can be avoided. Abnormal idle time can be avoided if proper precautions are taken. Thus the factors which are responsible for controlling and avoiding idle time must be taken care of.
Normal idle time is permitted but abnormal idle time should be avoided.