Cost Accountancy

If you are looking for a job in Cost Accounting, then referring these interview questions will help you to ace the job interview.

Q.1 When In a negative amount, define The Coefficient Of Correlation?
Lets consider when the coefficient of correlation is negative, such as -0.80, there is an inverse relationship. While, an increase in the independent variable will mean a decrease in the dependent variable. And on the other hand a decrease in the independent variable will mean an increase in the dependent variable.
Q.2 Consider the situation when In a positive amount, define The Coefficient Of Correlation?
When the coefficient of correlation is a positive amount, such as +0.80, it means an increase in the independent variable will result in an increase in the dependent variable. Also, a decrease in the independent variable will mean a decrease in the dependent variable.
Q.3 Please describe the Coefficient Of Correlation?
In simple linear regression analysis, the coefficient of correlation (or correlation coefficient) is a statistic which leaves the indication that the relationship between the independent variable and the dependent variable. The coefficient of correlation is represented by r and it has a range of -1.00 to +1.00.
Q.4 How is Coefficient Of Determination Symbolized?
The coefficient of determination is symbolized by r-squared, where r is the coefficient of correlation. Hence, a coefficient of determination of 0.64 or 64% means that the coefficient of correlation was 0.8 or 80%. (The range for the coefficient of correlation is -1 to +1, and therefore the range for the coefficient of determination is 0 to +1.)
Q.5 What is the Coefficient Of Determination?
It's a statistic indicating the Percentage change in the amount of the dependent variable that is "explained by" the changes in the independent variables.
Q.6 What do you understand by the Sales Mix?
It is the relative proportion or ratio of a business's products that are already sold. As a company's products are likely to vary in their profitability, so the Sales is is important.
Q.7 What are the Contribution Margin Ratio Facts?
Selling price per unit Fixed manufacturing costs per month Variable manufacturing costs per unit Fixed SG&A expenses per month Variable SG&A expenses per unit Fixed interest expense per month
Q.8 Describe The Contribution Margin Ratio?
It is the percentage of sales, service revenues or selling price that remains as balance after all variable costs and variable expenses have been covered. In other words, the contribution margin ratio is the percentage of revenues that is available to cover a company's fixed costs, fixed expenses, and profit. The contribution margin ratio is different from the gross margin ratio or gross profit percentage and cannot be computed directly from the reported amounts on the company's external income statement.
Q.9 Define Simple Linear Regression Analysis?
It is a statistical tool for quantifying the relationship between just one independent variable (hence "simple") and one dependent variable based on past experience (observations). For example, simple linear regression analysis can be used to express how a company's electricity cost (the dependent variable) changes as the company's production machine hours (the independent variable) change.
Q.10 In Cost Accounting what is Bep?
That level of activity at which total revenues are equal to the total costs. Therefore, a point at which there is no profit and no loss.
Q.11 Can you tell what difference Expenses And Expenditure posess?
The main they both posess is:
Expense is the outflow from a profit oriented organization while expenditure is the outflow from non-profit organization.
Q.12 What are the methods Used To Allocate the Support Costs?
There are two main methods for this:
the headcount or number of pc's per cost center.
Q.13 Tell me something you know about the Cost Sheets?
They consist 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.
Q.14 Please give tth difference Between Cost Accounting And Financial Accounting?
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 .
Q.15 What is a Cost sheet?
Cost sheet is a statement of cost for a product for given period of time.
Q.16 What is Incremental Cost?
Incremental cost is the increase in total costs resulting from an increase in production or other activity.
Q.17 What is production volume variance?
Production volume variance is concerned with a standard costing system used by manufacturers. Such that this variance indicates the difference between - 1. Company's budgeted amount of fixed manufacturing overhead costs. 2. Amount of the fixed manufacturing overhead costs that were assigned to the company's production output.
Q.18 What is Net Incremental Cash Flows in Cost Accounting?
We can define net incremental cash flows as the combination of the cash inflows and the cash outflows occurring in the same time period, and between two alternatives. For instance a company could use the net incremental cash flows to decide whether to invest in new, more efficient equipment or to retain its existing equipment.
Q.19 What will happen when a fixed cost remains constant in total?
When the fixed cost remains constant in total, the fixed cost per unit of output or input will change inversely with the change in the quantity of output or input
Q.20 What are independent variables?
In general, independent variable are defined as factors that causes a change in the total amount of the dependent variable. In other words, independent variable drives a mixed cost to increase or decrease.
Q.21 What is In-direct Materials in Cost Accounting?
Indirect materials such as oil for greasing will likely be viewed as part of the manufacturing supplies and will be allocated to products along with other manufacturing overhead.
Q.22 What is the Contribution Margin Ratio?
Contribution margin ratio refers to the percentage of sales, service revenues or selling price that remains after all variable costs and variable expenses have been covered.
Q.23 What is a standard cost?
Standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or a "should be" cost. Often standard costs are considered as a part of a manufacturer's annual profit plan and operating budgets.
Q.24 What is a cost sheet?
Cost sheet is a statement of cost for a product for given period of time.
Q.25 What is break-even point?
The break-even point is that at which level of activity at which the business makes neither a profit nor a loss.
Q.26 How is cost of goods calculated?
The cost of goods sold is equal to Opening stock + Total Purchases – Closing Stock + Direct Costs
Q.27 What does inventory turnover ratio express?
Inventory turnover ratio that how many times the inventory is turning over towards the cost of goods sold.
Q.28 What is Absorption costing?
The costing method in which fixed factory overheads are added to inventory is absorption costing.
Q.29 What are the advantages of integral accounting?
The advantages of integral accounting are: 1. System tends to coordinate the functions of different selections of the accounts department since all efforts are integrated and directed towards achievement of one aim that is providing a high level of efficiency. 2. Accounting procedures can be simplified and the system can be centralized with the object of achieving a greater control over the organization. 3. System creates conditions which are eminently suitable for the introduction of mechanized accounting
Get Govt. Certified Take Test