Cost Accounting is a type of management accounting it is a specialized area of expertise concerned with analyzing the
costs of products manufactured or sold by a company. In order for a corporation to be profitable, it’s critical to
understand the precise costs associated with a product and use that information to set appropriate prices. Cost
accountants do just that, and are therefore vital to overall financial decision-making.
Cost Accountants are responsible for budgeting, cost management, performance evaluation and asset management
within a company or organization. They typically collaborate as part of an executive team to create a financial plan for
the organization. They may work with corporate executives or heads of companies to strategically plan for a company,
or they may prepare financial reports for tax authorities, creditors, stockholders and regulatory agencies. Cost
accountants are responsible for collecting, adjusting, auditing, and scrutinizing financial information from all areas of
a company. They must collate the facts and numbers, which may include data about personnel, planning systems,
operating policies, wages, and bonuses into financial reports that can be thoroughly analyzed.
Cost Accountants might work for accounting or consulting firms, or they might work directly for corporations in the
retail or manufacturing sectors. But regardless of work environment, accurate cost accounting enables a company to
reduce financial waste and increase profit. A cost accountant would manage inventory, review the cost invested and
other such matters. They do analysis of the ongoing financial processes is the area of work.
Entry Level Education
- Bachelor’s Degree in Accounting, Business Administration, or Science.
- Master’s Degree in Financial Accounting or Master of Business Administration (MBA).