Ghatge Patil Industries Cost Accountant Interview Questions and Answers

Break-even point is the level of sales at which total costs equal total revenue.

• It is the point where a company neither makes a profit nor incurs a loss

• It is calculated by dividing fixed costs by contribution margin per unit

• It helps in determining the minimum sales required to cover costs

• It is affected by changes in variable costs, fixed costs, and selling price

The objective of management accounting is to provide relevant and timely information to management for decision-making.

• Assist in planning and controlling business operations

• Provide information for decision-making

• Facilitate performance evaluation and improvement

• Assist in cost management and reduction

• Help in budgeting and forecasting

• Provide insights into financial and non-financial performance

• Support strategic planning a

Marginal costing is a technique of cost accounting which deals with the ascertainment of marginal cost and its use in decision making.

• Marginal cost is the cost of producing one additional unit of a product.

• Fixed costs are not considered in marginal costing.

• It helps in determining the profitability of a product.

• It is useful in making short-term decisions like pricing, make or buy, etc.

• It is also known as variable costin