CoolInterview.com - World's Largest Collection of Interview Questions & Answers, FAQs, queries, sample papers, exam papers, dumps, what, why, how, where, when questions
Our Services
Get 9,000 Interview Questions & Answers in an eBook.




Get it now !!
Send your Resume to 6000 Companies

Search Interview Questions

Question: why is interest on loan not included in cost sheet ?

Answer: Hi Interest on loan will not be considered in cost sheet as it is financial expenditure form part of FI.it does not relate to production



Category Cost Accounting Interview Questions & Answers - Exam Mode / Learning Mode
Rating (4.3) By 31 users
Added on 9/22/2013
Views 598
Rate it!
Question: why is interest on loan not included in cost sheet ?
Answer:

Hi Interest on loan will not be considered in cost sheet as it is financial expenditure form part of FI.it does not relate to production Source: CoolInterview.com

Answered by: mallikarjuna | Date: 2/3/2009 | Contact mallikarjuna Contact mallikarjuna

interest on loan is not related with production Source: CoolInterview.com

Answered by: sumantra | Date: 4/20/2009 | Contact sumantra Contact sumantra

because interest is purely related to financial accounts. It is not the part of cost accounts Source: CoolInterview.com

Answered by: sujatha | Date: 5/18/2009 | Contact sujatha Contact sujatha

Interest on loan comes under Final Accounts beaz cost accounting deals with production and manufacturing. Source: CoolInterview.com

Answered by: Rupa . A | Date: 6/4/2009 | Contact Rupa . A Contact Rupa . A

Cost accounts present the cost associated with production and operations, alogwith operational overheads, but the financing costs are not attributable towards normal operations, and these pertain purely to the financing decisions taken by the management, and should not be part of the cost sheet for the sake of preserving the comparability of the reports. Source: CoolInterview.com

Answered by: Jag | Date: 6/16/2009 | Contact Jag Contact Jag

interest on loan is not included in cost sheet because it is treated as an item of finance. in cost sheet items of financil nature are not included. Source: CoolInterview.com

Answered by: ruchi | Date: 6/22/2009 | Contact ruchi Contact ruchi

Interest on loan is a financial charge and debited to Profit & Loss account. On the other, Cost sheet is statement of cost of product/service at the determined period of time Source: CoolInterview.com

Answered by: Mukesh | Date: 8/10/2009 | Contact Mukesh Contact Mukesh

Interest on loan is not included in costing.This is because if we consider cost of funds from outsiders used for production as a component of product cost, we should also consider a notional interest on the owner's funds . But considering notional interest costs will increase the product costs unnecessarily making it incompetent.
So its better to exclude the interest costs from the cost accounting but consider it while making production decisions. Source: CoolInterview.com

Answered by: Shubhi | Date: 10/27/2009 | Contact Shubhi Contact Shubhi


If you have the better answer, then send it to us. We will display your answer after the approval

Rules to Post Answers in CoolInterview.com:-

  • There should not be any Spelling Mistakes.
  • There should not be any Gramatical Errors.
  • Answers must not contain any bad words.
  • Answers should not be the repeat of same answer, already approved.
  • Answer should be complete in itself.

Post your answer here

Inform me about updated answers to this question.
Related Questions
View Answer
What is difference between cost accounting and financial accounting?
View Answer
how to make a table for to calculate the prime cost,factroy cost,total cost of production and cost of sales
View Answer
Explain cost sheet?
View Answer
what is CMM?
View Answer
What is the difference between Expenses & Expenditure ?
View Answer
What is marginal cost?

View Answer
What are variable costs?

View Answer
What are fixed costs?

View Answer
What is chargeback?

View Answer
Describe some of the methods used to allocate support costs.

View Answer
Tell us about your experience in cost accounting.

View Answer
Wat is BEP?

BEP-Break Event Point. It indicates no Loss and no Profit

View Answer

Please Note: We keep on updating better answers to this site. In case you are looking for Jobs, Pls Click Here Vyoms.com - Best Freshers & Experienced Jobs Website.

View All Cost Accounting Interview Questions & Answers - Exam Mode / Learning Mode




India News Network
Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
Cache = 0.984375 Seconds