Preview Questions Cost Accountant | Role Specific Skill

Question 1: What is the role of "inventory reconciliation" in maintaining accurate financial reporting in FMCG?

Which action should you take?

Choose only one option

It removes obsolete inventory from financial records

It ensures that physical inventory matches the recorded inventory, detecting discrepancies for adjustments

It helps forecast future inventory needs based on historical data

It allows for the calculation of profit margins based solely on sales transactions

Question 2: How do you assess the financial risk of launching a new product in FMCG?

Which action should you take?

Choose only one option

By forecasting only the production cost and excluding other variables

By evaluating the company's overall financial health without considering product-specific risks

By estimating the sales volume and ignoring potential market volatility

By evaluating the product's break-even point, contribution margin, and projected market demand

Question 3: What impact does "cost shifting" have on cost allocation practices in FMCG companies?

Which action should you take?

Choose only one option

It can distort financial analysis and lead to incorrect pricing decisions if costs are improperly allocated between products or departments.

It reduces the need for cost allocation by automating cost distribution.

It ensures that all costs are evenly distributed without regard to product type.

It eliminates indirect costs, focusing only on direct costs.

Question 4: What is the role of a control environment in the internal audit process for FMCG companies?

Which action should you take?

Choose only one option

It provides the foundation for the internal control system, influencing how risks are identified and controlled.

It eliminates the need for compliance with external regulations.

It focuses only on financial controls and not on operational risks.

It ensures that audits focus exclusively on revenue generation processes.

Question 5: What is the primary purpose of conducting a "ratio analysis" for an FMCG company?

Which action should you take?

Choose only one option

To ignore fixed costs and focus exclusively on sales revenue.

To determine the company's market share relative to competitors.

To evaluate the company's financial health by comparing different financial metrics over time.

To estimate future sales by comparing past sales figures.

Question 6: What is the primary goal of inventory shrinkage reduction in FMCG companies?

Which action should you take?

Choose only one option

To enhance forecasting accuracy and reduce the need for excess stock.

To reduce storage costs by eliminating non-essential inventory.

To increase profit margins by lowering the cost of goods sold.

To minimize losses caused by theft, damage, or errors in recording inventory.