Sourcing Manager Interview Questions and Answers for Freshers

Machine hour rate calculation involves determining the cost of operating a machine per hour, including various components.

• Calculate total machine cost per hour by adding up all expenses (e.g. labor, maintenance, utilities)

• Divide total machine cost by total machine hours to get machine hour rate

• Components of machine hour rate include direct costs (e.g. labor, materials) and indirect costs (e.g. overhead, depreciation)

• Example: Total machine cost per hour = $100, Total machine h...read more

Zero base costing is a method of budgeting in which all expenses must be justified for each new period.

• Zero base costing involves starting from scratch and justifying all expenses for HPDC components.

• It helps in identifying unnecessary costs and reallocating resources more efficiently.

• Example: Evaluating the cost of raw materials, labor, and overhead for HPDC components without assuming any previous budget.

• Example: Comparing the cost of producing HPDC components in-house vers...read more