Should Costing Engineer Interview Questions and Answers

MHR calculation involves analyzing the manufacturing processes to determine the most cost-effective method.

• Calculate the Machine Hour Rate (MHR) for each production process by dividing the total cost of running the machine by the total number of machine hours.

• Consider factors such as labor costs, material costs, overhead costs, and machine depreciation when calculating MHR.

• For example, in casting, the MHR would include costs for the casting machine, labor for operating the ma...read more

Should costing involves analyzing the components and processes of a product to determine the ideal cost.

• Analyzing the materials and components used in the product

• Evaluating the manufacturing processes involved

• Estimating the labor and overhead costs

• Comparing the should cost with the actual cost to identify cost-saving opportunities

P2P process stands for Procure-to-Pay process, which involves all steps from requisition to payment for goods or services.

• P2P process starts with a purchase requisition being created by the requester.

• The requisition is then approved by the appropriate authority.

• A purchase order is generated and sent to the supplier.

• Goods or services are received and inspected.

• An invoice is received from the supplier.

• The invoice is matched with the purchase order and goods receipt.

• Payment is m...read more