Top Cost Accountant Interview Questions and Answers
Posted by FirstNaukri
Mar 20, 2020
Interested to build a career in Cost Accounting? Here is a curated compilation of the latest and most frequently asked Cost Accounting Interview Questions and their Answers. Crack your Cost Accountant interview in your first attempt. Gather good knowledge to grasp the basic concepts.
In brief, cost accounting is a procedure of recording, examining, and assigning costs related to a process. This analysis is used to chart numerous courses of actions to control costs. Those with strong Cost Accounting concepts get hired as Supervisor, Operations, Cost Accountant – Executive, Cost Accountant/Financial Analyst and Manager at companies.
In this article we have curated a list of top cost accounting interview questions and answers for you.
Define cost accounting in your words.
Cost accounting is all about assigning costs to all kinds of cost objects. Cost objects include a company’s products, services, and certain business activities. Cost accounting is helpful because it can identify the exact place where a company is spending money, what are the earnings, and where this money is getting lost.
Single line answer:
Hence in a single sentence, const accounting is the method followed to record all the costs incurred in a systematic manner.
Why is cost accounting important for businesses?
Your answer to this question can give the interviewer an idea of how passionate and knowledgeable you are for the job role. It can also offer a glimpse into your personality as a candidate since your retort or answer might give them an idea of why you want to become a cost accountant.
Ideally, prepare a detailed and passionate answer. Also have an explanation ready on what the importance of your role in their company would be. What to fit into your answer:
- Your passion about cost accounting
- Understanding the importance of this particular job role as it relates to the entire business of your future employer
- Knowledge of the field
Example: “To have a well-run business, you need to know how to eliminate unnecessary costs. Cost accounting is vital to being able to do that.”
Describe a time in one of your previous internships/ jobs where attention to detail was vital.
For all I know Cost Accounting is all about details. Without clear basics and a correct understanding of the important aspects of a financial feasibility analysis, my entire analysis as a cost accountant might be worthless. Then in that case, a project could potentially end up costing significantly more than anticipated for my company. Hence, I have to be a cost-accountant who excels at working with details. This is vital to the success of this role.
Try to display attention to detail and understand the importance of getting the job done. What to fit into your answer:
- Revise analysis frequently
- Ensure nothing was left unaccounted for
- Thirst for excellence
Example: “I once revised my report as an intern at ABC Corp. and realized there were costs I hadn’t considered! Due to my attention to detail and careful attitude, I caught the loophole it blew out of proportion into a real problem.”
How to determine the selling price for a service / product?
As a cost accountant, try to find ways to recover the money lost in creating the product. This would determine a minimum selling price. Your answer must have a detailed response to this question and make it clear that you know a system to decide what the best selling price should be. What to fit into your answer:
- Possess a clear process for determine selling price
- Ensure the selling price will make up for costs
- Demonstrate experience and expertise
Example: “I study competition and dive into current market trends as well as compare the same with cost of production and consider how much my typical consumer is ready to pay up.”
Describe a time in a previous internship / project / job where your recommendation resulted in efficient production
As a good cost accountant, you must look at all expenses and find ways to reduce them. Having an eye for potential inefficiencies is a must. Also, articulate a clear and detailed answer to this question. Tell exactly how much you saved their a former boss / employer. What to fit into your answer:
- Know how to find problems in a system
- Articulate an example from a previous internship / project / job where you saved money for the employer / project owner
- Demonstrate you are great at finding alternatives that are less costly
Example: “I helped my project director at ABC Corp. upgrade her building’s lighting to more energy-efficient ones, saving her thousands of rupees every year on electricity expenditures.”
What is your process for ensuring that all your work is correct?
For a cost accountant, mistakes can be expensive. So you have to show a method for catching mistakes early on in your process. Show that you follow a clear process for finding any problems within a company’s data or calculations. Also, take the interviewer through all the steps in the procedure and demonstrate that you take care of all details. What to fit into an answer:
- You are detail-oriented
- You have a process for catching mistakes
- You are confident about accuracy and error-catching
Example: “I like the accrual method of accounting, as it works well. I review data many times and ensure to verify calculations at least twice so that all debits and credits are accurately balanced.”
Hope the cost accounting questions and answers listed above are of use to you. Prepare well for your upcoming Cost Accounting Interview Question and ace it like a pro.
In case you have a telephonic interview for cost accountant position, do not get nervous. Articulate the answers shown in this article confidently on call. If possible, note down points on a pad instead of memorizing.
All the best!
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