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Cost Accounting Interview Questions Interview Questions

Question : Explain cost sheet?

Answers:

Cost sheet is a statement of cost for a product for given period of time.

Posted by: venkats    

cost sheet is a detailed statement of cost of a product for a given period of time.

Posted by: ruchi    

Cost sheet means a statement prepare to arrive per unit cost which includes Raw material cost, Packing materials Cost, Conversion Cost & packing charges.If the product is manufacturred for 3rd party, finance cost & margin to be added.

Posted by: Asho Kumar A Gehlot    

cost sheet is a decision making statement contains both historical and estimated data related to cost of production, expressed in terms of cost per unit for a particular product at a point of time.

Posted by: Prof.A.S.RAMNARAYANAN    

function of cost sheet

Posted by: yeasn125    

Cost Sheet is a periodical statement of cost designed to show in detail the various elements of cost of goods produced like Prime Cost, Factory Cost of Production & Total Cost. It is prepared at regular intervals eg, weekly, monthly quarterly, yearly etc. Comparative figures of the various period may also be shown in the cost sheet so that assessement can be made aboput the progress of the business.

Posted by: Prof. ABDUL WAJID.K.    

A cost sheet is a documents that collects costs of a job, product or service.It will collect details of direct costs and overheads. The end result will be the cost of product or service or cost incurred in a particular cost centre.

Posted by: Micro Observer    

cost sheet means statement of cost showing, cost per unit of any product at every level of production.its important to know that at what stage of production we are have what price.

Posted by: pankaj kumar (P.G.T ) G.R.D DEHRA DUN    

Cost sheet is the detailed statement regarding the cost of per unit of a particular product taking consideration its Prime Cost,and variable cost.

Posted by: Dipankar Bhowmick    

A Cost sheet is statement of cost designed to show in detail the various elements of cost of goods produced its important to know that at what stage of production we are have what price show.

Posted by: Nitin    

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cost sheet is a statement of cost which is shown a raw material cost manufacturing cost production cost and u will b assume a what is our seal praise.

Posted by: Arun    

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Cost sheet consists of the direct and indirect expenses incurred in producing a given product and classifying the expenses incurred according to office, administration, selling and distribution overheads

What is difference between cost accounting and financial accounting?

Answers:

One of the basic differences cost accounting is helpfully in controlling the cost of production whereas financial accounting is concerned is helpfully in determining financial position of a concern .

Posted by: rahim    

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The difference between "cost accounting" and "financial accounting are terms refer to the accounting techniques used internally by a company's management to determine the costs of running the business and help in decision making. For example, reports that compare budgeted to actual expenses are commonly used to monitor the successful management of a specific department or store within a larger enterprise.

Posted by: miki    

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Cost Accounting means an accounting in which costs are ascertained by the organization in respect of its business activities and it is not used by the people external to the organization.It mainly helps in cost ascertainment and its control.

Financial Accounting is an accounting which helps in determining the financial position of firm.It gives the profit or loss of the firm for agiven period and does not help in controlling cost.

Posted by: Rohit Kakkar    

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cost accounting helps in finding out cost of a product and control of cost.whereas financial accounting helps in knowing the financial position of the business i.e is profit or loss in a financial year.

Posted by: C# (Sharp) Programming    

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cost accountancy helps in controlling the cost of a product &determines the cost of aproductfor 1unit this method of accounting is in demand as it discusses about cost of a productit is of two types-1costing methods -eg cost sheet,contact costing, process costing, unit out put costing2. costing techniques - marginal costing, standard costingmanagment acconting - plays a veryimp role in the market as it discusses about planning, decession making, projections&implementations" both accountings are more esential for effctive business

Posted by: ravindra    

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cost accounting is helpful to know the production where as financial accounting is helpful to know the financial positions of the concern

Posted by: ahmed mohammad bashwar    

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big difference but both have senchronization with each other in costing we find the cost of the particular business and in financial accounting position of a company shown if costing done better then inancial possition will good.

Posted by: hafsa    

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cost accountuing is job undertaken by firm.financial accounting is concerned with recording of business transaction in the books of account.

Posted by: NEHA SHAW    

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yes sir, the main differences between cost accounting and financial accounting is in cost accounting we are preparing cost sheets to know the cost price of one units produce where as in financial accounting we are preparing financial statement to know the profitability and financial position of business.

Posted by: chandu    

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cost accounting is job undertaken by a company & financial accounting is recording transection in the company books

Posted by: preeti     

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The main purpose of cost accounting is to identify, record and report to the management the costs related with the products or services in order to help them in making decisions about controlling costs and fixing selling prices.Whereas the main objective of Financial accounting is to identify, record and report to the stakeholders the financial operations carried on by the enterprise and its financial position as on a given date.

Posted by: Shubhi    

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Chosen by VotersAccounting is a set of concepts and techniques that are used to measure and report financial information about an economic unit. The economic unit is generally considered to be a separate enterprise. The information is potentially reported to a variety of different types of

interested parties. These include business managers, owners, creditors, governmental units, financial analysts, and even employees. In one way or another, these users of accounting information tend to be concerned about their own interests in the entity. Business managers need accounting information to make sound leadership decisions. Investors hold out hope for profits that may eventually lead to distributions from the business (e.g., "dividends"). Creditors are always concerned about the entity's ability to repay its obligations. Governmental units need information to tax and regulate. Analysts use accounting data to form their opinions on which they base their investment recommendations. Employees want to work for successful companies to further their individual careers, and they often have bonuses or options tied to enterprise performance. Accounting information about specific entities helps satisfy the needs of all these interested parties.

The diversity of interested parties leads to a logical division in the discipline of accounting: financial accounting and managerial accounting. Financial accounting is concerned with external reporting of information to parties outside the firm. In contrast, managerial accounting is primarily concerned with providing information for internal management. You may have some trouble seeing why a distinction is needed; after all aren't we just reporting financial facts? Let's look closer at the distinctions.

FINANCIAL ACCOUNTING: Consider that financial accounting is targeted toward a broad base of external users, none of whom control the actual preparation of reports or have access to underlying details. Their ability to understand and have confidence in reports is directly dependent upon standardization of the principles and practices that are used to prepare the reports. Without such standardization, reports of different companies could be hard to understand and even harder to compare. As a result, there are well organized processes to bring consistency and structure to financial reporting. In the United States, a private sector group called the Financial Accounting Standards Board (FASB) is primarily responsible for developing the rules that form the foundation of financial reporting. With the increase in global trade, the International Accounting Standards Board (IASB) has been steadily gaining prominence as a global accounting rule setter.

Financial reports prepared under the generally accepted accounting principles (GAAP) promulgated by such standard setting bodies are intended to be general purpose in orientation. This means they are not prepared especially for owners, or creditors, or any other particular user group. Instead, they are intended to be equally useful for all user groups. As such, attempts are made to keep them free from bias (neutral).

MANAGERIAL ACCOUNTING: In sharp contrast to financial accounting, managerial accounting information is intended to serve the specific needs of management. Business managers are charged with business planning, controlling, and decision making. As such, they may desire specialized reports, budgets, product costing data, and other details that are generally not reported on an external basis. Further, management may dictate the parameters under which such information is to be accumulated and presented. For instance, GAAP may require that certain research costs be deducted immediately in computing a business's externally reported income; on the other hand, management may see these costs as a long-term investment and stipulate that internal decision making be based upon income numbers that exclude such costs. This is their prerogative. Hopefully, such internal reporting is being done logically and rationally, but it need not follow any particular set of guidelines.

Posted by: KADZAHLO, DANIEL A FLY    

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Cost accounting is for computing cost of product or service while finance accounting relates to preparing the details for nowing Profit or loss for particular perid and knowing financial position of organisation at particular point of time

Posted by: Pankaj Srivastava    

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Cost Accounting is a process of finding unit cost and also cost control and cost reduction.whereas Financial Accounting helps us to find profitability and actual position of business.

Posted by: Arvind Sharma    

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financial accounting focus on external reporting &guided by by GAAP.While cost accounting is measuring &reporting financial &non financial information related to the acqusition and utilization of resources.

Posted by: dereje    

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In cost accounting,with the help of cost sheet we are easy to find out cost per unit, cost of prodution & cost of goods sold. with the help of cost sheet, the company has to decied the m.r.p. of the that makes the profit.In case of financial accounts, with the help of financial statement we determine profit or loss of the company & also know the financial position of the company.

Posted by: Dipesh    

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cost accounting is used to find the cost per unit where aggregate amount is only known in financial accounting

Posted by: P.Tamilarasan    

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cost accounting is use to control cost of products, while financial accounting is use to control financial position of a firm

Posted by: wahdat khan    

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Cost Accounting is a special method of modern accounting which helps to know us the original per unit cost of a product. And Financial Accounting is a primitive type of accounting which is kept the record of financial transaction and helps to know financial position of a the concern through Balance Sheet.

How to make a table for to calculate the prime cost,factroy cost,total cost of production and cost of sales

Answers:

direct material ********direct labour *******direct expenses *******prime cost *******+factory o.heads *******factory cost *******+office exp *******office cost *******+adm&selling exp *******cost of production of goos sold ***

Posted by: ravindra    

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Question : What is the difference between Expenses & Expenditure ?

Answers:

The difference between expenses and expenditure. Expenese is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.

Posted by: ahmed akewula    

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The expenses and expenditure are two term that interweve. The differently they look, the more they look the same.

Expense are monies expended on items on which no value remains eg expenses on wages and salaries, Nepa bills, transportation, etc while expenditures are monies used for items of which some values remains eg purchase of assets especiaaly.

Posted by: okoloise Godfrey    

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expenses means different types of expenses incurred by an organisation

expenditure means the total expenses the company incurred can be regarded as an expenditure

conclusion- meaning is same but slight differencein simple words"expenses can be regarded as the exp met by a company""group of expenses can be regarded as expenditure"

Posted by: ravindra    

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if an asset is acquired during the year,it is expenditure but if it is consumed during the same year it is expense.

Posted by: payal srivastava    

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The difference between expense and expenditure. The expenditure is the cost beared for the purchase of assest into the business. The benefits of this expenditure can be for longer period of time. While the amount spent on the repair and maintenance of the car comes under expense. The benefits of expense can be for limited period.

Posted by: Muhammad Aftab     

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Expenses means Amounts paid?for goods and services that may be currently tax deductible (as opposed to capital?expenditures)

Expenditure means The act of spending?money for goods or services

Posted by: Gokul    

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Expenses means which is bound to be incurred as and when required it can be regular exepnses say electricity is not expenditure. But expenditure means after taking decision some amount to be spent for it.

Posted by: Jhankhana    

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Expense means we receives some benefi on the financial year itself wheree as an expenditure meand benefit is deferred in future

Posted by: regi    

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In the simple words Expenses are revenue nature & Expentidures are capital nature.

Posted by: sunil    

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Expenses: These are those amounts the economic benefit of which has already taken by the business.Expenditure: These are those amounts the economic benefit of which has not yet completely or partially taken by the business like capital expenditure for example machinery purchased etcOr in simple language we can say expenses are the cash outflows of revenue nature, and expenditure are cash outflows of capital natute

Posted by: Sagar Zodgekar    

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Question : Tell me the information about cost sheets.

Answers:

cost sheet consists of the direct and indirect expenses incurred in producing a given product and classifying the expenses incurred according to office, administration, selling and distribution overheads..

Posted by: PRAVEENA N    

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Cost sheet is a statement of particulars of expenses ( direct and indirect)which an organization incurred while producing a particular product. cost sheet classifies cost and

expenses according to their nature which may be administration, selling and distribution, Production. it also classifies cost as per it's behavior ie direct or indirect.

Posted by: Sagar Zodgekar    

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Question : Tell us about your experience in cost accounting.

Answers:

Refering any books or questions wont give any experience, here experiene, i think means, the level or the grade of CostA/C works done...

I think its Very Fantastic to work on Cost Accounting because the ordinary people does not know,How to find cost of a particular product precisely,how to control cost,how to prepare budget and planning for low cost.

Posted by: Arvind Sharma    

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Question : Describe some of the methods used to allocate support costs.

Answers:

Headcount or number of pc's per cost centre.

on the basis of actual area where theexpense has taken place

Posted by: rohit dhanuka    

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1)Utilsation of cost center - production confirmation booked to CC baseed on routings

/ 2) Cost center out put generated

/ 3) Based on power utilisation

Posted by: Amit Khatri    

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Question : "cost accounting has become an essential tool of management "- What is your opinion

Answers:

"Cost Accounting" in simple meaning costing of the product for the market. But in modern market (which is full of big competitors) launching any new product in the market have to take necessary and minded steps which gives spread in the whole market and ofcourse also in the consumers eyes.

Earlier cost accounting's meaning was just determining the cost of a particular product and classification of the same as per it's nature or behavior. But in the modern context cost accounting means not mere determining the cost of the product but also includes project costing, budgeting, decision making, project financing . all these are very important aspects from the company's management point of view. As cost accounting facilitates all these things cost accounting today is becoming an essential tool of management

Posted by: Sagar Zodgekar    

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Question : Tell us about your experience in cost accounting.

Answers:

In a manufacturing company diffrent shops they will send docket for the no. of hours they are worked. We feed the docket and have to prepare the labour cost ledger. Material accounting section will provide information regading the material consumed so we have to prepare material cost ledger. Finally we have to prepare cost ledger by combining material and labour cost.

Question : What is the difference between cash flow statement and funds flow statement

Answers:

Funds flow statement includes the transactions which are made on credit basis whereasCash flow statement includes transactions recorded on current date basis.

Question : What is the difference between Expenses and Expenditure?

Answers:

The difference between expenses and expenditure. Expense is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.

Question : What is CMMI?

Answers:

Capability Maturity Model Integration (CMMI) is a process improvement approach that provides organizations with the essential elements of effective processes.It can be used to guide process improvement across a project, a division, or an entire organization. CMMI helps integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide a point of reference for appraising current processes.

Question : What is BEP?

Answers:

BEP- Break Event Point: It indicates no Loss and no Profit

The level of activity at which, total revenues equal total costs.

A point at which there is no profit and no loss.

Question : What are variable costs?

Answers:

Variable cost or Marginal cost is the cost that is directly proportionate to the number of units being produced (unit being a Tangible item produced or an Intangible service that is provided). It increases proportionately if the number of units that are being produced/provided are increased and decreases proportionately when the number of units that are being produced/provided are decreased.

Question : What are fixed costs?

Answers:

The costs that are fixed irrespective of production are fixed costs. EX: Rent Depreciation

Question : what does the name costing mean and what are the importance of costing?

Answers:

Itis basically the ascertainment of cost whether for a specified thing or activity. To ascertain cost, we need to apply accounting and costing principles, methods and techniques.

importance1)It assist management to make decision for example make or buy, whether to accept a special order and others;

2)It assist management in planning and control;

3)Costing assists management to appreciate scarce resources in the increasingly complex business operations;

4)Understanding costing assist in cost awareness, cost control / management;

5)Is vital to an organization?s survival re: using marginal cost in competitive tendering and others.

Posted by: coxwell ong'iro marago    

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Question : What is CMM?

Answers:

CMM is an internationally recognized standard for measuring the maturity of an organization's software development processes and has become the primary benchmark multinational corporations use to judge IT service providers ' abilities to deliver high quality software. Bleum is now one of only a few companies in China to be assessed SEI CMM Level 5.

The Capability Maturity Model (CMM) was developed under the guidance of the Software Engineering Institute (SEI) of Carnegie Mellon University in the U.S. It is organized into five maturity levels with SEI CMM Level 5 being the highest. By operating at this high a CMM level, customers ' benefit from Bleum's ability to consistently deliver high quality software on schedule, which ultimately results in a lower total cost of software ownership due to less rework and easier maintenance.

Question : why is interest on loan not included in cost sheet ?

Answers:

Hi Interest on loan will not be considered in cost sheet as it is financial expenditure form part of FI.it does not relate to production

Posted by: mallikarjuna    

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interest on loan is not related with production

Posted by: sumantra    

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because interest is purely related to financial accounts. It is not the part of cost accounts

Posted by: sujatha    

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Interest on loan comes under Final Accounts beaz cost accounting deals with production and manufacturing.

Posted by: Rupa . A    

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Cost accounts present the cost associated with production and operations, alogwith operational overheads, but the financing costs are not attributable towards normal operations, and these pertain purely to the financing decisions taken by the management, and should not be part of the cost sheet for the sake of preserving the comparability of the reports.

Posted by: Jag    

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interest on loan is not included in cost sheet because it is treated as an item of finance. in cost sheet items of financil nature are not included.

Posted by: ruchi    

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Interest on loan is a financial charge and debited to Profit & Loss account. On the other, Cost sheet is statement of cost of product/service at the determined period of time

Posted by: Mukesh    

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Interest on loan is not included in costing.This is because if we consider cost of funds from outsiders used for production as a component of product cost, we should also consider a notional interest on the owner's funds . But considering notional interest costs will increase the product costs unnecessarily making it incompetent.So its better to exclude the interest costs from the cost accounting but consider it while making production decisions.

Posted by: Shubhi    

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Question : Wat is BEP in Cost Accounting?

Answers:

The level of activity at which total revenues equal total costs.

A point at which there is no profit and no loss.

The Point at which the company total revenue exactly equal to the company total cost is called break even point. If the company sell or production beyond this level profit shall accrue , below this level loss shall suffer

Posted by: Singeetham Raghavendra    

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Question : Describe some of the methods used to allocate support costs.

Answers:

Headcount or number of pc's per cost centre.

Question : What is chargeback?

Answers:

A process in the industry where a wholesaler requests an amount that is the difference between the manufacturer's price to the wholesaler and the contract price to the resale customer.

The actual chargeback occurs when the wholesaler sells the manufacturer's product at contract price that is below wholesaler acquisition cost (WAC).

Especially evident in pharmaceutical industry.In electronic commerce, a charge back is a reversal of a credit card transaction, which is usually initiated by the card issuer as requested by the cardholder. It may also be requested by the merchant. Charge backs usually occur due to fraudulent activity on the card (real or perceived), due to customer disputes, or from other authorization issues.

Question : What is marginal cost?

Answers:

Marginal Cost is variable cost AS LONG AS your fixed assets can handle the output. If that additional unit forces you to acquire more assets to handle it your marginal cost can be way out of line with your average variable cost.

Question : What are the freight charges ?

Answers:

There are two types of freight charges one is Inward and the other one is Outward.Inward is grouped under Direct expenses and it may be taken into landed cost. Outward is grouped under Indirect expense and it will be incurred after production.

Question : Tell me about your experience in cost accounting?

Answers:

Referring any books or questions wont give any experience, here experience, i think means, the level or the grade of Cost A/C works done etc.

Question : Define cost objective & define cost center ?

Answers:

The objective of cost is not limited only towards accertainment of cost of poduct, it also provide fruitful information to the managment of co. weather resources are properly utlized or not.Any unit of cost accounting is selected with view to accmulating all cost under that unit. The unit may be a product, a group of employee, a group of plant & machinery, or a combination of several units.

Question : Wat is BEP?BEP-Break Event Point. It indicates no Loss and no Profit

Answers:

BEP is a point when company is at the position of no profit no loss.in LC-CURVE it is the highest point.Whenever a company comes in existance in the starting it is investing more and earning less slowly slowly it comes in the position when saturation state comes means its expences are equals to its earnings.this state is actually known as BEP.

Question : What is the difference between cost accounting and financial accounting?

Answers:

One of the basic differences cost accounting is helpfully in controlling the cost of production whereas financial accounting is concerned is helpfully in determining financial position of a concern .

Question : What is Cost Accounting?

Answers:

This can be described as the process of accumulating, measuring, analyzing, interpreting and reporting cost information that is both useful and relevant to the internal and external stakeholders of a business entity. External stakeholders are those who have a vested financial interest in a business or company. For example banks (loans), financial houses (mortgages), investors (investments), etc. Internal stakeholders are the business or company directors, managers, division heads, etc.

One of the many benefits of cost accounting is that it turns data into information, knowledge and wisdom about a business entity?s operations that is useful for:

► measuring performance► reducing or managing costs► determining the fees or prices for goods and services► deciding to authorize, modify or discontinue a program or activity

Question : Describe some of the methods used to allocate support costs.

Answers:

There nothing like support cost.

There 3 types of cost allocation

1. reposting (pce)

2. distribution (pce)

3. assesment (pce&sce)

Question : Define cost objective and define cost center?

http://www.globalguideline.com/interview_questions/Answer.php?a=What_is_the_marginal_cost&page=2

Question : What is the marginal cost? Marginal Cost (MC):The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output.

Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20

The EconModel applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve.