Costing Officer Interview Questions and Answers

Product costing as per CAS is calculated by identifying direct and indirect costs and allocating them to the product.

• Identify direct costs such as materials and labor

• Identify indirect costs such as overhead and allocate them based on a predetermined cost driver

• Use the formula Total Cost = Direct Cost + Indirect Cost to calculate product cost

• Ensure compliance with Cost Accounting Standards (CAS)

Cycle time is the time required to complete a process or task from start to finish.

• Cycle time is a measure of efficiency in a process.

• It can be calculated by dividing the total time taken to complete a process by the number of units produced.

• Cycle time can be used to identify bottlenecks and areas for improvement in a process.

• For example, in a manufacturing plant, cycle time could be used to measure the time it takes to produce a single unit of a product.

• Reducing cycle time c...read more