Cost Trainee
20+ Cost Trainee Interview Questions and Answers
Q1. What will be your action if you have posted a debit entry in miscellaneous expenses for purchase of goods?
I would correct the entry by reversing the debit entry in miscellaneous expenses and posting a credit entry in the correct account for purchase of goods.
Reverse the debit entry in miscellaneous expenses
Post a credit entry in the correct account for purchase of goods
Ensure proper documentation and approval for the correction
Review the accounting records to prevent similar errors in the future
Q2. What is the section that allows to deduct TDS on salaries?
The section that allows to deduct TDS on salaries is Section 192 of the Income Tax Act.
Section 192 of the Income Tax Act deals with the deduction of TDS on salaries.
This section specifies the rates at which TDS should be deducted from salaries.
Employers are required to deduct TDS from the salaries of their employees as per the provisions of this section.
The TDS deducted under Section 192 needs to be deposited with the government within the specified time frame.
Employees can c...read more
Cost Trainee Interview Questions and Answers for Freshers
Q3. Whether one can take ITC if his input tax is shown only on GSTR 2A. If no then when one can take itc?
ITC can be taken only if the input tax is reflected in GSTR 2A and meets other conditions specified in the GST law.
ITC can be taken only if the supplier has uploaded the invoice in GSTR 1 and it is reflected in GSTR 2A of the recipient.
The recipient must ensure that the supplier has paid the tax to the government before claiming ITC.
ITC can be claimed in the month following the month in which the invoice was uploaded by the supplier.
If the input tax is not reflected in GSTR 2...read more
Q4. What is the Journal Entry for Purchase of goods?
The journal entry for purchase of goods involves debiting the inventory account and crediting the accounts payable or cash account.
Debit the inventory account to record the increase in inventory value
Credit the accounts payable account if the purchase is on credit
Credit the cash account if the purchase is made in cash
Example: Debit Inventory $1,000, Credit Accounts Payable $1,000
Q5. What is Marginal Costing? What is Marginal Cost?
Marginal costing is a costing technique where only variable costs are considered in determining the cost of a product or service.
Marginal costing is also known as variable costing.
It helps in decision-making by providing information on the impact of producing additional units on profit.
Marginal cost is the cost of producing one additional unit of a product or service.
It includes only variable costs such as direct materials, direct labor, and variable overhead.
Fixed costs are ...read more
Q6. What is Activity Based Costing?
Activity Based Costing is a costing method that assigns costs to specific activities based on their consumption of resources.
It is a more accurate and detailed approach to cost allocation compared to traditional costing methods.
It identifies and assigns costs to activities that drive the consumption of resources.
It helps in understanding the cost drivers and their impact on the overall cost of products or services.
It provides insights into the profitability of different produ...read more
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Q7. What is Asset Monetization?
Asset monetization refers to the process of converting assets into cash or generating income from assets.
Asset monetization involves selling or leasing assets to generate revenue.
It can also involve using assets as collateral to secure loans or financing.
Examples of asset monetization include selling real estate properties, leasing out equipment, or licensing intellectual property.
Asset monetization can help organizations unlock the value of underutilized or non-core assets.
I...read more
Q8. Explain all GST returns with dates
There are various GST returns that need to be filed at different intervals.
GSTR-1: Monthly return for outward supplies
GSTR-2A: Auto-populated return for inward supplies
GSTR-3B: Monthly summary return
GSTR-4: Quarterly return for composition dealers
GSTR-5: Monthly return for non-resident taxpayers
GSTR-6: Monthly return for input service distributors
GSTR-7: Monthly return for tax deducted at source
GSTR-8: Monthly return for e-commerce operators
GSTR-9: Annual return
GSTR-10: Final...read more
Cost Trainee Jobs
0Q9. 1)What do you mean by prime cost 2)What is customer life cycle 3) Fixed and variable Overheads
1) Prime cost is the direct cost of production, including raw materials and labor. 2) Customer life cycle is the stages a customer goes through in their relationship with a company. 3) Fixed overheads are costs that do not change with production levels, while variable overheads vary with production.
Prime cost includes direct costs like raw materials and labor
Customer life cycle includes stages like awareness, consideration, purchase, and loyalty
Fixed overheads are costs like ...read more
Q10. What is meant by capital employed
Capital employed refers to the total amount of capital invested in a business.
Capital employed includes all the long-term and short-term funds invested in a business.
It is calculated by subtracting current liabilities from total assets.
Capital employed is an important metric for measuring a company's financial health and efficiency.
Examples of capital employed include investments in property, plant, and equipment, as well as working capital such as inventory and accounts rece...read more
Q11. What is sec 194Q?
Sec 194Q refers to the provision under the Income Tax Act that requires buyers to deduct TDS on purchase of goods above a specified threshold.
Sec 194Q is a provision under the Income Tax Act of India.
It requires buyers to deduct tax at source (TDS) on purchase of goods.
The provision applies to buyers whose total turnover exceeds a specified threshold.
The threshold for applicability is INR 50 crores in the previous financial year.
Buyers need to deduct TDS at the rate of 0.1% o...read more
Q12. What is Sunk Cost?
Sunk cost refers to the cost that has already been incurred and cannot be recovered.
Sunk cost is a past cost that is irrelevant to future decision-making.
It is important to ignore sunk costs when making decisions.
Examples of sunk costs include money spent on non-refundable tickets or investments that have already lost value.
Q13. Described the utilities of Cost center and types
Cost centers are used to track and allocate expenses. There are two types: production and service.
Cost centers help in identifying and tracking expenses incurred by a particular department or function.
Production cost centers are those that are directly involved in the production process, such as manufacturing or assembly.
Service cost centers are those that provide support services to production cost centers, such as maintenance or quality control.
Cost centers help in allocati...read more
Q14. What is TDS sec and rate for consultancy
TDS stands for Tax Deducted at Source. The TDS rate for consultancy services is 10%.
TDS stands for Tax Deducted at Source
The TDS rate for consultancy services is 10%
Consultancy services are subject to TDS deduction at the rate of 10%
Q15. Income tax returns with due dates
Income tax returns have specific due dates depending on the type of taxpayer.
Individual taxpayers must file their returns by April 15th of each year.
Businesses may have different due dates depending on their entity type and fiscal year.
Extensions may be granted in certain circumstances, but taxes owed must still be paid by the original due date.
Late filing penalties and interest may apply for returns filed after the due date.
Q16. Journal of accrued income and prepaid expenses
Accrued income and prepaid expenses are recorded in journals to ensure accurate financial reporting.
Accrued income is income that has been earned but not yet received, recorded as a debit in the income account and a credit in the accrued income account.
Prepaid expenses are expenses paid in advance, recorded as a debit in the prepaid expenses account and a credit in the cash account.
Accrued income and prepaid expenses journals help in matching revenues and expenses to the peri...read more
Q17. Cost auditing standards, criteria for cost audit
Cost auditing standards and criteria ensure accuracy and transparency in financial reporting.
Cost auditing standards are established by regulatory bodies to ensure compliance with accounting principles and laws.
Criteria for cost audit include verifying the accuracy of financial statements, identifying areas of potential cost savings, and assessing the effectiveness of internal controls.
Examples of cost auditing standards include the Generally Accepted Accounting Principles (G...read more
Q18. fabrics costing in detail
Fabrics costing involves analyzing the cost of materials used in production, including fabric types, quantities, and prices.
Analyzing different fabric types and their costs per yard/meter
Calculating the quantity of each fabric required for production
Determining the total cost of fabrics based on quantities and prices
Considering any additional costs such as shipping or taxes
Comparing costs of different fabric suppliers for cost optimization
Q19. process flow of garment
The process flow of garment involves various stages from design to production to distribution.
Designing the garment based on market trends and customer preferences
Sourcing materials such as fabric, buttons, zippers, etc.
Pattern making and cutting of fabric pieces
Sewing and assembling the garment
Quality control checks at different stages
Packaging and labeling for distribution
Shipping to retailers or customers
Feedback collection for future improvements
Q20. WHAT IS ABC ANALYSIS
ABC analysis is a method of categorizing items based on their importance.
ABC analysis categorizes items into three groups: A (most important), B (moderately important), and C (least important).
It helps in prioritizing resources and efforts based on the importance of items.
Example: A company may use ABC analysis to focus on managing inventory levels for high-value items in category A.
Example: In healthcare, ABC analysis can be used to prioritize patient treatment based on the ...read more
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