Preview Questions Cost Accountant | Role Specific Skill

Question 1: 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 2: How does JIT (Just-In-Time) inventory management work in FMCG companies?

Which action should you take?

Choose only one option

It increases inventory levels to prevent stockouts.

It reduces production efficiency by increasing wait times.

It minimizes inventory by ordering goods only when needed for production or sale.

It encourages bulk purchasing to lower unit costs.

Question 3: 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 4: What is the role of financial ratios in long-term forecasting for FMCG companies?

Which action should you take?

Choose only one option

They help predict future financial health by analyzing key metrics such as profitability, liquidity, and efficiency.

They focus primarily on sales without considering other financial factors.

They provide short-term predictions, irrelevant to long-term forecasting.

They only account for historical data and ignore future trends.

Question 5: In financial forecasting, how can "variance analysis" help a cost accountant in FMCG?

Which action should you take?

Choose only one option

It helps compare actual results against forecasts, identifying areas for corrective actions.

It consolidates financial figures without analyzing specific deviations.

It only looks at fixed costs and ignores variable costs.

It focuses on long-term trends without considering short-term fluctuations.

Question 6: What is the role of "activity-based costing" (ABC) in financial analysis for an FMCG company?

Which action should you take?

Choose only one option

ABC only applies to manufacturing costs, excluding administrative expenses.

ABC allocates costs based on activities that drive costs, providing a more accurate allocation for products and services.

It focuses on high-level financial statements without breaking down individual costs.

ABC simplifies cost allocation by assuming all products incur equal costs.