Preview Questions Cost Accountant | Role Specific Skill

Question 1: How can an integrated ERP (Enterprise Resource Planning) system enhance inventory management in FMCG?

Which action should you take?

Choose only one option

By centralizing inventory data, streamlining purchasing, and automating stock level updates.

By limiting inventory visibility to the finance department.

By ignoring real-time inventory tracking to save costs.

By excluding supplier management from the inventory system.

Question 2: How do internal controls related to inventory valuation impact financial reporting in FMCG?

Which action should you take?

Choose only one option

Inventory valuation is irrelevant to financial reporting as long as sales are accurate.

Inventory valuation does not impact financial reporting if accurate sales data is used.

Internal controls ensure that inventory is valued correctly, impacting the cost of goods sold and profitability.

Internal controls only apply to physical stock counts, not financial reporting.

Question 3: What is the challenge of managing perishable goods in FMCG inventory systems?

Which action should you take?

Choose only one option

Reducing the inventory count to increase profitability.

Focusing solely on financial projections for shelf life.

Ignoring expiration dates in inventory valuation.

Ensuring inventory is sold or used before it expires, preventing waste and loss.

Question 4: How do you handle the allocation of joint costs in FMCG, where a single production process results in multiple products?

Which action should you take?

Choose only one option

By using a suitable method such as the physical unit or relative sales value method

By equally dividing the total joint costs among all products

By assigning joint costs based on anticipated sales volumes

By excluding joint costs from product cost calculations

Question 5: How do you manage the uncertainty in sales forecasts for seasonal FMCG products?

Which action should you take?

Choose only one option

By ignoring seasonal fluctuations and focusing on annual trends.

By focusing only on sales from the previous quarter.

By using historical data and adjusting for seasonal trends and market conditions.

By using a flat growth rate across all periods.

Question 6: How does batch tracking help FMCG companies manage inventory more efficiently?

Which action should you take?

Choose only one option

It focuses on maximizing profit margins, ignoring tracking of individual batches.

It tracks product categories without regard to individual batches, making inventory management less complex.

It is only applicable for companies that produce perishable goods, not FMCG.

It allows for detailed tracking of inventory based on specific production batches, aiding in recalls and quality control.