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Employee Cost

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Sujal Jain

30 Points Posted on 16 October 2021

In Employee Cost chapter why normal idle time is subtracted while calculating effective working hours ?

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Quick Summary

This discussion explains why normal idle time is subtracted when calculating effective working hours for employees. Normal idle time, such as waiting for work or machinery, is excluded to accurately determine the productive hours. By reducing this idle time, businesses can effectively increase overall productivity and gain a clearer picture of their true employee costs.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 October 2021

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Muni Sai

CA IPCC Student

16 Points Posted on 22 October 2021

To know the effective hourly employee cost , normal ideal time should be eliminated.
***normal ideal time means - the time which employee don't have any work or waiting for the work to start or due to machinery malfunction employees have to wait for the machine to work an etc
In above mentioned examples normally such time waste is considered as idel time