Cost Accounting Interview Questions

The derivative of total production costs with respect to the level of output is Marginal cost.

The benefits you
could have received by taking an alternative action is oppurtunity cost.

what is limited liability clause complet detailes of this question

Limited liability caluse is mentioned in memorendum of association. Under this clause, it is mentioned that the liability of the members of the company i.e share holders have liability upto their amou...

details of purchasing

Coming from a manufacturing environment, the key functions of purchasing are twofold - supply & cost:(1) Ensure production plans are always met - no downtime (of course no line down) because of&nb...

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 incr...

variable costs are dependeing upon production. u re increases production automatically variable cost is also increased.decrease in production means automatically variable cost decreased. 

Statement showing changes in inflow &
outflow of cash during the period is Cash Flow Statement.

Statement showing the sorce &
application of funds during the period is Fund Flow Statement.

Break Even Point is a point where there is no profit and no loss . It is very important for every company to take managerial decisions like how much quantity to be sold to gain desired profit, how many units to be sold to get the desired profit, to find margin of safety etc.,

Break Even Point is the point where there is no Loss No Profit. The total revenues will be equal to total costs.

Margin of safety is the difference between Actual Sales and Sales at Break Even Point. The Higher is the margin of safety, the better is for the organisation.

MARGIN OF SAFETY: ACTUAL SALES - BREAK EVEN SALES.
MARGIN OF SAFETY: PROFIT /P/V RATIO.

There nothing like support cost.

There 3 types of cost allocation

1. reposting (pce)

2. distribution (pce)

3. assesment (pce&sce)

Headcount or number of pc's per cost centre.

In this modern age of cut-throat competetion cost accounting for the product is must to mininize cost of product and gettting maximum profit. If the producer does not maintain or minimize waste in the cost he will be failer.

"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, ha...

The capital which is mentioned in the capital clause of the memorandum of assoiciation is called as authorised capital.For example if the capital requirement of the business in the long run is Rs. 10,...

5 years

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 accounti...

10 % per year

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 actua...

A recharge of costs

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