Industrial Engineer Mock Interview
Master 51 Industrial Engineer interview questions covering process optimization, lean systems, and data analysis.
Question 15 of 51
Can you explain the main methods for calculating costs when it comes to production environments?
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Holly Chavez is a multidisciplinary freelance writer and news columnist. She has a BS in Industrial Engineering Technology. Holly specializes in writing about business, engineering, and sustainability.
This question is related to accounting, and as an engineer, part of your function will be in designing processes that cut costs or analyzing current processes to give cost cutting recommendations. That being said, knowing how to calculate production costs is a massive part of being successful in this area.
Holly Chavez is a multidisciplinary freelance writer and news columnist. She has a BS in Industrial Engineering Technology. Holly specializes in writing about business, engineering, and sustainability.
"The two primary methods for calculating production cost are process and job-order cost calculation. The job-order cost method is utilized when orders are placed at the factory for many products and specific jobs. Since jobs and lots are easily identifiable throughout the whole process, the cost can be directly related to both. Meanwhile, the process-cost method is utilized for times that production ensues in a continuous manner. When the process-cost method is used, individual products are not identified as specific lots or jobs."
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