Careers in Cost Accounting

List of Top 3 Cost Accounting Careers

Below mentioned are some of the Cost Accounting Career/job roles that a person can opt –

  1. Cost Accountant
  2. Budget Analyst
  3. Cost Estimator

Overview of Cost Accounting Careers

Cost accountingCost AccountingCost accounting is a defined stream of managerial accounting used for ascertaining the overall cost of production. It measures, records and analyzes both fixed and variable costs for this purpose.read more is the method of accounting under which the cost of production of the company is captured by assessing the cost of the inputs in each production step along with the fixed costs associated like depreciation of the assets etc. Cost accounting is thus the process that involves the process of the recording, analyzing, and allocating the cost associated and then implementing the measures to control the cost. With the cost accounting, detailed information is provided to the management for the purpose of controlling the current operating costsOperating CostsOperating expense (OPEX) is the cost incurred in the normal course of business and does not include expenses directly related to product manufacturing or service delivery. Therefore, they are readily available in the income statement and help to determine the net profit.read more and planning for the future.

The person doing the cost accounting job is responsible for the various tasks. Cost accounting career in the present world is one of the good career opportunities. There are various areas in the cost accounting job roles where the person can look like his career option, some of which are as below:

Below is the list of top 3 Cost Accounting job roles/careers:

Careers in Cost Accounting

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Career #1 – Cost Accountant

The cost accountant appointed by any company is generally responsible for budgeting, performance measurement and evaluation, cost managementCost ManagementCost management is an integral part of business management that works on the basis of estimates, where various activities such as data collection, data analysis and mechanisms, process evaluation, and event reporting are carried out so that the decision-maker can plan and control the organization's budget requirements, allowing the decision-maker to make informed decisions.read more, and the asset management of the company. Their work is meant for internal use. They collect and analyze the financial information which is used by the management of the company and helps management in taking the future decision with respect to the working of the company.

Responsibilities

Top Companies

  • Ernst and Young, Delloite and touche LLP, KPMG.

Salary

  • The median annual pay per year for accountants and auditors was $ 70,500 per year in May 2018 and $ 33.89 per hour as per the Bureau of Labor Statistics of the United States. The lowest 10 % of the accountants and auditors earned less than the $ 43,650, and the highest 10 % of the accountants and auditors earned more than the $ 122,840.

Demand & Supply

  • Employment of the accountants and auditors is expected to grow at the rate of 10 % from the year 2016 to the year 2026 as per the data collected by the Bureau of Labor Statistics of the United States. This growth is faster than the average of all the occupation because their growth is tied up with the health of the overall economy, and as when the economy will grow, the work of accountants and auditors will increase for the need for preparation and examination of financial records.

Education Requirement

  • A Bachelor’s Degree in finance, accounting, or related field.

Recommended Courses/Qualifications

Positives

  • Remuneration and the perks are high, as there is a huge demand for the cost accountants.
  • It offers good growth potential.
  • High demand for cost accountants.

Negatives

  • Meeting targets requires long working hours.
  • Work may become monotonous sometimes.
  • Persons who don’t have analytical skills cannot make their career in this.

Career #2 – Budget Analyst

Budget analysts play an important role in the organization as they help the public and the private institutions in organizing their finances as they prepare the budget reportsBudget ReportsBudget reports are often projected reports that illustrate an organization's future planning for how to accomplish its revenue target in order to sustain in the market, how to meet its expenditure, how to acquire assets and how to invest in the market for growth.read more of the organizations based on past spending and economic trends and helps these institutions in monitoring their spending. They are crucial as they help in maintaining profitabilityProfitabilityProfitability refers to a company's ability to generate revenue and maximize profit above its expenditure and operational costs. It is measured using specific ratios such as gross profit margin, EBITDA, and net profit margin. It aids investors in analyzing the company's performance.read more, reaching the financial goals, and finally attaining the growth in the long term.

Responsibilities

  • Develop the budget of the organization by coordinating with the project and program managers.
  • Reviewing the budget proposals of managers.
  • Estimating the financial needs of the future.
  • Combining the different programs and the departmental budgets together into one organizational budget in consolidated form and then reviewing the funding requests for the merit.
  • Explanation of the recommendation for the funding request to the other concerned person.
  • Monitoring the spending of the organization to make sure that they are within the budget as prepared by the company.

Job Statistics

  • As per the data collected by the Bureau of Labor Statistics of the United States, in 2016, there was 58,400 employed Budget Analyst.

Top Companies

  • Ivy Exec, Deloitte, the MIL Corporations

Salary

  • The median annual pay per year for Budget Analyst was $ 76,220 per year in May 2018 and $ 36.65 per hour as per the Bureau of Labor Statistics of the United States. The lowest 10 % of the Budget Analyst earned less than the $ 49,860, and the highest 10 % of the Budget Analyst earned more than the $ 116,300.

Demand & Supply

Education Requirement

  • A Bachelor Degree in finance, accounting, or the related field.
  • Master’s degree in the field of Accounting, finance, or related areas.

Recommended Courses/Qualifications

  • Certified Public Accountant (CPA)
  • Master of Business Administration (MBA)

Positives

  • High earning as there is a huge demand for the Budget analysts.
  • Good employment
  • Job stability

Negatives

  • Long working hours.
  • Traveling is required for getting the information.
  • Overtime is sometimes required, especially at the time of the final budget reviews.

Career #3 – Cost Estimator

Estimating the costEstimating The CostCost estimate is the preliminary stage for any project, operation, or program in which a reasonable calculation of all project costs is performed and thus requires precise judgement, experience, and accuracy.read more of manufacturing and construction projects is vital for the survival of any company. For this important work, Cost estimators play an important role as it provides information to the managers who are required for the purpose of submitting the competitive contract bids of the different projects or to price the products appropriately Cost estimator collects and analyzes the data of the company for estimating the time, money, labor, and material, etc. which are required for manufacturing the product, constructing the building or providing the services.

Responsibilities

  • Go through the blueprints or the other technical documents for the preparation of the estimates.
  • Identification of the factors which affect the costs of the company.
  • Collect, calculate, adjust, and analyzes the data of the company.
  • Providing information to the managers who are required for the purpose of submitting the competitive contract bids of the different projects.
  • Recommending the different ways to the company to reduce the overall costs.
  • It is maintaining the records of the estimated costs and the actual costs of the company.

Job Statistics

  • As per the data collected by the Bureau of Labor Statistics of the United States, in 2016, there were 217,900 employed Cost estimators.

Top Companies

  • Ford Motor Company, Fluor Corporation, and the Boeing Company.

Salary

  • The median annual pay per year for the Cost estimator was $ 64,040 per year in May 2018 and $ 30.79 per hour as per the Bureau of Labor Statistics of the United States. The lowest 10 % of the cost estimator earned less than the $ 38,060, and the highest 10 % of the cost estimator earned more than the $ 107,940.

Demand & Supply

  • Employment of the cost estimator is expected to grow at the rate of 11 % from the year 2016 to the year 2026 as per the data collected by the Bureau of Labor Statistics of the United States. This growth is faster than the average of all the occupation due to the increasing demand of the cost estimator because of the need of the companies for accurate cost projections in order to make sure that their products or services are profitable. The construction industry growth is also expected to create a majority of the new jobs for the cost estimator.

Education Requirement

  • A Bachelor’s Degree in the field of finance, accounting, business, or economics.

Recommended Courses/Qualifications

  • Certified Public Accountant (CPA)
  • Certified Management Accountant (CMA)

Positives

  • High earning as there is a huge demand for the cost controller.
  • High job opportunities being the role is important for every organization.

Negatives

  • Handle the pressure as many things are to be managed in different areas in the company.
  • Long working hours with stress.

Recommended Articles

This has been a guide to Careers in Cost Accounting. Here we provide the list of top 3 Cost Accounting job roles, descriptions & career paths, including Cost Accountant, Budget Analyst, etc. You may also have a look at these Career articles below –

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