Mock test papers help secure more marks, and it is subject-oriented questions. Interview questions and answers help for getting a professional attitude. The questions are knowledge and intelligence-based. The projects, achievements, responsibilities, software tools, languages promote business communication, and the teamwork of cost accountants make the interview a professional one. Let us discuss the key interview questions and answers asked in the Indian and MNC Companies. This blog help learners to dream about their dream job and walk through the job opportunities. The questions are theoretical and practical by nature. The demands and expectations of the employer thrive towards finding the right person. Apart from the academic records, the questions with practical elements help to enhance the confidence and curiosity level.
Indian Companies:
Cut-throat competition, cost consciousness, outsourcing and technological up-gradation are the business challenges that change the process of managerial decision making. Accounts professionals reinforce the accounting education with changes as per the profession. The below-given questions are framed with Indian company’s perspectives. Indian companies deal with different costs, cost centre information, and profitability ratio to decide about production and business expansion. The below answers impress the examiner with the appropriate financial information.
What is sunk cost?
Sunk cost involves the cost of the product as per the usage and history. This cost is not relevant for decision making. When selling an asset, the market value is considered and not the book value. So, a sunk cost is only for recording the transactions and not for the decision making process. The impact of the decision will not affect the sunk cost. This cost arises out of the cost of equipment, machinery, and lease expenses.
What are the types of cost centres?
Cost centres and profit centres generate information’s to make business decisions. Cost centres improve operational efficiency, product value, customer service, brand awareness, building maintenance, and legal compliance. Cost centres reduce costs. Cost centres operate with the costs such as production costs, administration costs and sales costs. And they are the production cost centre, administration and sales cost centre, and service cost centre. Impersonal, personal, operation, product, service and process cost centres are the other types of cost centres. Cost centres do not produce direct revenue. Accounts department, human resource department, marketing department, IT department, quality control and legal department are the departments that record costs in the cost centres. Cost variance comes by adding up the price variance and quantity variance. The human resource department does not generate revenue, but it helps for the functioning of the Company. The cost centres improve customer satisfaction by solving the location constraints. The Company remain safe and clean, as the cost centres maintain the equipment and buildings. These centres analyse the cost data, and to reduce cost, the cost accountants develop business plans. They research the customer problems and find positive solutions.
What are the advantages of the P/V ratio?
The profit volume ratio includes the selling price and marginal cost. The increase and decrease of selling price have an impact on marginal cost. By the increase of selling price with marginal cost remaining the same, the profit volume increases. With the decrease of marginal cost with selling price remaining the same, the profit volume ratio increases. The production, operations and processes are valued with the profitability. The formula of the P/V ratio is contribution divided by sales. With the help of the profit volume ratio, the cost accountant calculates the breakeven point and profit at different volumes.
Foreign Companies:
Software knowledge, accounting standards difference, MIS report maintenance, and cost control strategies are some of the questions that propagate the process of MNC Companies. The below-mentioned questions give an idea to the student about the questions framed in MNC Companies.
What is the difference between ABAP memory and SAP memory?
SAP is the global memory, and it is used for the main sessions. ABAP is the local memory that can be used for the internal session. SAP memory is read and written by getting and setting parameters. Import from memory and export to memory is used for the ABAP memory.
Why do different countries have different accounting standards?
Accounting standards help for maintaining relevance and quality in financial statements. There are 41 types of accounting standards in India. GAAP {Generally accepted accounting principles} and IFRS {International financial reporting standards} form the different accounting standards.
Explain the MIS report?
MIS report is the management information system maintained in an excel sheet or software to improve the efficiency of any department.
Mention some of the cost control strategies?
The different types of cost strategies helpful for domestic and international operations are budgetary control, material control, labour control, standard costing and overheads control.
Final words:
Cost accountants can work in Indian Companies and MNC Companies. The cost control strategies and accounting standards are different in local and global processes. It is essential to understand the application of knowledge as per the business challenges. The domain knowledge is essential for a cost accountant, and it can be developed through job experience. The experience of the cost accountant brings out professionalism. In the initial stage of the profession, the interview, the professionalism should reflect.