Cost Trainee Interview Questions and Answers for Freshers

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

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

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

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