Philips Senior Manager Interview Questions and Answers

Variable and fixed costs are calculated to understand the cost structure of a business and make informed decisions regarding pricing, production, and profitability.

• Variable costs fluctuate with the level of production or sales, such as raw materials or labor costs.

• Fixed costs remain constant regardless of production levels, like rent or salaries.

• Calculating these costs helps in determining break-even points, setting pr...read more

Inventory valuation methods include FIFO, LIFO, weighted average, and specific identification.

• FIFO (First In, First Out) - assumes that the oldest inventory items are sold first

• LIFO (Last In, First Out) - assumes that the newest inventory items are sold first

• Weighted Average - calculates the average cost of inventory items based on their total cost and total units

• Specific Identification - assigns the actual cost of eac...read more

Process costing is a method of costing used to determine the cost of producing a product in a continuous production process.

• Process costing is used in industries where products are mass-produced on a continuous basis.

• It involves averaging the costs of production over all units produced during a specific period.

• Costs are allocated to each unit based on the average cost of production.

• Examples include industries like food...read more

Variance analysis is a technique used to identify and analyze the difference between planned and actual performance.

• Variance analysis helps in understanding the reasons for deviations from expected outcomes.

• Material Usage variance is calculated by subtracting the actual quantity of materials used from the standard quantity, and then multiplying the result by the standard price per unit.

• Formula: Material Usage Variance ...read more