Fiem Industries Senior Accounts Executive Interview Questions and Answers

Standard cost is calculated by adding up all the direct and indirect costs of production.

• Direct costs include materials, labor, and overhead expenses.

• Indirect costs include rent, utilities, and depreciation.

• Once all costs are added up, divide by the number of units produced to get the standard cost per unit.

• Standard cost is used to compare actual costs and identify areas for improvement.

BOM stands for Bill of Materials.

• A comprehensive list of raw materials, components, and assemblies required to manufacture a product.

• Used in manufacturing, engineering, and supply chain management.

• Helps in determining the cost of a product and planning production schedules.

• Example: BOM for a car would include engine, tires, seats, etc.

Cost run is the total cost incurred in running a business or project. It includes all expenses related to production, marketing, and administration.

• Cost run is calculated by adding up all the expenses incurred in running a business or project.

• Expenses include production costs, marketing costs, and administrative costs.

• To run cost effectively, businesses need to identify areas where they can reduce expenses without comp...read more

Product cost is calculated by adding direct and indirect costs. Landed cost includes product cost and additional expenses.

• Product cost includes direct costs like raw materials, labor, and indirect costs like overheads.

• Landed cost includes product cost and additional expenses like shipping, customs, and taxes.

• Formula for product cost = direct costs + indirect costs.

• Formula for landed cost = product cost + additional exp