Preview Questions Cost Accountant | Role Specific Skill

Question 1: What is the importance of document control in the internal audit process for FMCG?

Which action should you take?

Choose only one option

It is only necessary for financial audits, not operational audits.

It ensures that all relevant documents are appropriately reviewed, stored, and accounted for during the audit process.

It is only relevant for compliance audits, not financial or operational audits.

It eliminates the need for auditing procedures related to inventory and costs.

Question 2: What is the role of safety stock in managing inventory for FMCG companies?

Which action should you take?

Choose only one option

It only applies to slow-moving inventory.

It reduces inventory levels to minimize storage costs.

It eliminates the need for regular inventory counts.

It serves as a buffer to account for fluctuations in demand and supply chain disruptions.

Question 3: How do you assess the financial impact of shifting production from one supplier to another in FMCG?

Which action should you take?

Choose only one option

By estimating future savings without considering quality issues

By focusing solely on the price difference between suppliers

By evaluating the total cost differences, including logistics, quality control, and unit costs from both suppliers

By excluding hidden costs such as administrative adjustments

Question 4: What is the role of "fixed cost allocation" in determining the cost structure of FMCG products?

Which action should you take?

Choose only one option

It is only used for large volume products and not applicable to all

It reduces the accuracy of product cost calculations by overestimating fixed costs

It ensures that fixed costs are allocated proportionally across product lines based on a relevant base

It excludes fixed costs from product costing entirely

Question 5: What are the risks of using a "single sourcing" strategy for inventory procurement in FMCG?

Which action should you take?

Choose only one option

It allows for greater cost savings by reducing purchasing complexity

It guarantees better product quality and faster delivery

It increases dependency on one supplier, making the company vulnerable to supply chain disruptions

It ensures uniform pricing for all inventory items

Question 6: How do you manage "seasonal fluctuations" in inventory for FMCG companies?

Which action should you take?

Choose only one option

By ordering larger quantities of products before seasonal demand spikes

By keeping inventory levels constant year-round to avoid stockouts

By adjusting inventory orders based on historical demand patterns and forecasting seasonal peaks

By reducing inventory storage capacity during off-peak seasons