Questionnaire ICI- Animal Health

Interview Questions:
Introduction

 Introduce yourself, company and the business you are related to in detail.
 What are the main products of your business segment, briefly describe?

Materials:

 What are the different types of raw materials that you use?
 How do they decide the quantity of raw material to be purchased?
 How do you value your COGS and CI inventory?
 How do you place a purchase order?
 What are their ordering and holding costs?
 Do you have a goods received note?
 How do you record the purchase in your books?
 How do you store the raw materials?
 How do you record the obsolete or damaged inventory item?

Labor:

 Does the company make use of process costing or job order costing?
 What are the different types of labor/ unskilled/direct/indirect?
 Are the labors permanent? Are the wages fixed or at hourly rate?
 Are the wages fixed or variable or mixed costs?
 Are there any extra benefits for the employees?
 How do you record the labor hours: biometric or time sheets?
 How many workers do you have?
 Overheads:

 What are the different expenses which are classified as overheads?

 Which of the above expenses are fixed or variable?
 How do you allocate the Overhead costs to production costs?
 What is the basis of your overhead absorption rate? Fixed or variable,
 How do you treat over/under absorption?

Finished Goods:

 How do you record the movement of FG from the production floor to FG inventory
 How do you record COGS (Cost of Goods Sold)

Selling Price:

 How do you derive the selling price of your different product?

 Whether they are following Process Costing or Job Order Costing