Habib Gulzar is planning to open new production line in Kabul, where they are going to produce variety of juices. They are hiring staff for the production unit like workers, cost accountants, production manager and managerial accountants. You are interested in the position of managerial accountant as they are offering good package. 

After your submitting application for the position you are called for an interview. In order to impress the interviewers, you are required to provide effective answers for the following questions asked during interview: 

1. Can you explain with a help of an example how idle standards are different from practical standards? Being a managerial accountant which standard you will follow to standardize cost of product? 

2. How does the content of reports and the verification of reports differ between managerial and financial accounting? 

3. Decision making is management’s most important function.” Do you agree? Why or why not? 

4. What will be the total manufacturing costs? Let’s say Habib Gulzar Manufacturing Inc. has beginning work in process AFN 26,000, direct materials used AFN 240,000, direct labor AFN 200,000, total manufacturing overhead AFN 180,000, and ending work in process AFN 32,000. 

5. Which process you will follow as a managerial accountant to determine predetermined overhead rate/ standard overhead rate, in the process of standard costing? 

6. What are the similarities and differences between standards cost and budgets.

Answer rating: 100% (QA)

1 Ideal standardsIdeal standards are standards that do not allow for normal wastage and work interruption due to breakdown of machinery employees rest periods shortage of raw materials or any other re... View the full answer