10+ Cloudsheer Consulting Interview Questions and Answers

Cost, costing, cost accounting, and cost accountancy are related to the process of determining and analyzing the expenses incurred in producing goods or services.

• Cost refers to the amount of money spent on producing goods or services.

• Costing is the process of determining the total cost of production by analyzing various cost components.

• Cost accounting involves recording, classifying, and analyzing costs to help management make informed decisions.

• Cost accountancy is a broader ...read more

Absorption and over absorption of overheads occur when actual overhead costs differ from the overhead costs absorbed into production.

• Absorption of overheads occurs when actual overhead costs are absorbed into production based on a predetermined overhead rate.

• Over absorption of overheads happens when the absorbed overhead costs exceed the actual overhead costs incurred.

• Under absorption of overheads occurs when the absorbed overhead costs are less than the actual overhead costs...read more

Cost accounting standards are necessary for ensuring consistency, transparency, and accuracy in financial reporting.

• Ensure consistency in cost calculations across different organizations

• Provide transparency in financial reporting for stakeholders

• Help in accurate decision-making by management

• Ensure compliance with regulatory requirements

• Facilitate comparison of costs and performance within an industry

• Examples: Cost Accounting Standards Board (CASB) in the US, International Fin...read more

Cost accounting standards are guidelines for measuring, assigning, and allocating costs in a consistent manner.

• Cost Accounting Standard 401: Determination of Reasonableness of Costs - Ensures that costs are reasonable and allocable to the contract.

• Cost Accounting Standard 402: Consistency in Allocating Costs Incurred for the Same Purpose - Requires consistent allocation of costs for the same purpose.

Budgetary control is a process of setting budgets, comparing actual performance against the budgets, and taking corrective actions to achieve financial goals.

• Setting budgets for different departments or projects

• Monitoring actual performance against the budgets

• Analyzing variances and taking corrective actions

• Helps in achieving financial goals and improving efficiency

• Example: A company sets a budget for marketing expenses and regularly compares actual spending to the budget to ...read more

Variance analysis is a technique used to compare actual costs to budgeted costs in order to identify differences and analyze the reasons behind them.

• Variance analysis helps in understanding the reasons for deviations from the budgeted costs.

• It involves comparing actual costs with standard or budgeted costs to determine the differences.

• Variances can be favorable (costs lower than expected) or unfavorable (costs higher than expected).

• By analyzing variances, companies can take c...read more

SCA 104 is a standard costing method used in manufacturing industries to determine the cost of products.

• SCA 104 stands for Standard Cost Accounting 104.

• It involves setting predetermined costs for direct materials, direct labor, and overhead.

• Variances are calculated by comparing actual costs to standard costs.

• Helps in cost control and decision-making.

• Example: If the standard cost for a product is $10 for direct materials and actual cost is $12, there is a $2 unfavorable varian...read more

Recent updates on GST include changes in tax rates, new compliance requirements, and updates on input tax credit rules.

• GST rates have been revised for various goods and services.

• New compliance requirements such as e-invoicing and QR code on invoices have been introduced.

• Updates on input tax credit rules to prevent fraudulent claims.

• Changes in GST return filing deadlines and procedures.

Cost sheet includes direct and indirect costs incurred in production.

• Includes direct materials, direct labor, and manufacturing overhead costs

• Indirect costs like factory rent, utilities, and depreciation are also included

• Helps in determining total production cost and setting selling prices