Cost Controller Interview Questions and Answers

Cost is the expense incurred in producing a product or service, while price is the amount charged for that product or service.

• Cost is the sum of all expenses incurred in producing a product or service, including materials, labor, and overhead costs.

• Price is the amount charged to the customer for that product or service, which includes the cost of production plus a profit margin.

• Cost is an internal measure used by companies to determine profitability, while price is an externa...read more

Fixed costs are expenses that remain constant regardless of production output, while variable costs change with production output.

• Fixed costs include rent, salaries, insurance, and property taxes.

• Variable costs include raw materials, labor, and utilities.

• Fixed costs are easier to predict and plan for, while variable costs can fluctuate and impact profitability.

• Understanding fixed and variable costs is important for effective cost control and budgeting.

• Fixed costs are also kno...read more

Zero based costing is a budgeting technique that starts from scratch and requires justification for every expense.

• It involves creating a budget from zero base rather than using the previous year's budget as a starting point

• All expenses must be justified and prioritized based on their importance to the organization's goals

• It helps to identify unnecessary expenses and allocate resources more efficiently

• Examples include a company deciding to cut down on office supplies or travel...read more

CPI, BCWP, ACWP, CAC, and CTC are terms used in cost control and project management.

• CPI stands for Cost Performance Index, which measures the cost efficiency of work completed in comparison to the budgeted cost.

• BCWP stands for Budgeted Cost of Work Performed, which represents the budgeted cost of work that has been completed.

• ACWP stands for Actual Cost of Work Performed, which represents the actual cost incurred for the work completed.

• CAC stands for Cost at Completion, which ...read more

I have 5 years of experience in cost controlling and purchasing in the manufacturing industry.

• Managed budgeting and forecasting processes to control costs effectively

• Negotiated with suppliers to secure competitive pricing and quality materials

• Implemented cost-saving initiatives such as lean manufacturing practices

• Utilized ERP systems for tracking expenses and analyzing spending patterns

Oil and gas costing details involve analyzing expenses related to exploration, production, and transportation of oil and gas.

• Analyze costs associated with drilling, equipment, labor, and transportation

• Monitor expenses for maintenance, repairs, and upgrades of oil and gas facilities

• Calculate overhead costs and allocate them to specific projects

• Review contracts with suppliers and vendors to ensure cost-effectiveness

• Utilize cost control software to track and manage expenses

Mfg. costing involves calculating the total cost of manufacturing a product, including direct materials, labor, and overhead.

• Calculate direct materials cost by multiplying the quantity used by the cost per unit.

• Calculate direct labor cost by multiplying the hours worked by the labor rate.

• Calculate overhead cost by allocating indirect costs to the product based on a predetermined rate.

• Add all three costs together to determine the total manufacturing cost.

• Example: Direct materi...read more