McDermott International Interview Questions and Answers

Deprivation refers to the lack or denial of something essential for a person's well-being. There are various types of deprivation.

• Deprivation can be of different types such as sleep deprivation, food deprivation, sensory deprivation, social deprivation, etc.

• Sleep deprivation can lead to fatigue, irritability, and decreased cognitive function.

• Food deprivation can cause malnutrition and starvation.

• Sensory deprivation can lead to hallucinations and psychological distress.

• Social ...read more

The golden rule for nominal accounts is to credit all expenses and losses and debit all incomes and gains.

• Nominal accounts are temporary accounts used to record revenues, expenses, gains, and losses.

• The golden rule states that all expenses and losses should be credited, and all incomes and gains should be debited.

• For example, if a company pays rent, the rent expense account should be credited, and the cash account should be debited.

• This rule helps to ensure that the nominal a...read more

Abnormal loss is recorded as a debit entry in the process account.

• Abnormal loss is the loss of material due to reasons beyond control such as theft, fire, etc.

• It is recorded as a debit entry in the process account to show the decrease in the quantity of material.

• The amount of abnormal loss is calculated by deducting the actual output from the expected output.

• For example, if the expected output is 100 units and the actual output is 90 units, the abnormal loss is 10 units.

• The e...read more

Abnormal loss refers to the loss of materials or products that is not expected in normal production processes.

• It is a type of loss that occurs due to unforeseen circumstances such as accidents, theft, or natural disasters.

• Abnormal loss is different from normal loss which is expected and accounted for in the production process.

• Examples of abnormal loss include damage to raw materials during transportation, spoilage of perishable goods, and breakage of equipment.

• Abnormal loss c...read more

Prime cost is the direct cost of materials and labor required to produce a product or service.

• Prime cost includes the cost of raw materials, direct labor, and any other direct costs associated with production.

• It does not include indirect costs such as rent, utilities, or administrative expenses.

• Calculating prime cost is important for determining the profitability of a product or service.

• For example, if a company produces a widget that costs $10 in raw materials and $5 in dire...read more

Depreciation is a cost that reflects the decrease in value of an asset over time.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is charged against revenue to reflect the wear and tear of an asset over its useful life.

• Examples of assets that are subject to depreciation include buildings, vehicles, and equipment.

• Depreciation can be calculated using various methods such as straight-line, double-declining balance, and sum-of-the-year...read more