Idle time caused by equipment breakdown should be accounted for as:
A) A period cost
B) Direct labor cost
C) A selling expense
D) A manufacturing overhead cost

Question

Quizplus · Accepted Answer

Idle time due to equipment breakdown is considered a part of manufacturing overhead because it is a cost related to the production process but cannot be directly traced to specific units of product.

Idle Time Caused by Equipment Breakdown Should Be Accounted for As