Flex Cost Accounting Executive Interview Questions and Answers

General Accounts and English

Q1. What is standard costing
Ans. 
Standard costing is a cost accounting method where costs are predetermined and compared to actual costs to analyze variances.
• Standard costing involves setting predetermined costs for direct materials, direct labor, and overhead.

• Actual costs are then compared to these predetermined costs to identify any variances.

• Variances can be analyzed to understand the reasons for deviations from standard costs.

• Standard costing help...read more
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Q2. What is purchase price variance
Ans. 
Purchase price variance is the difference between the actual cost of materials purchased and the standard cost of materials expected to be purchased.
• Purchase price variance helps in analyzing the difference between the actual cost of materials purchased and the standard cost set for those materials.

• It is calculated by multiplying the difference in price per unit by the actual quantity purchased.

• A favorable purchase pri...read more
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