List of Top 3 Cost Accounting Careers

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

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 accounting method under which the company’s production cost 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. With cost accounting, detailed information is provided to the management to control 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 plan for the future. Cost accounting is thus the process that involves the process of recording, analyzing, and allocating the cost associated and then implementing the measures to control the cost.

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

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

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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 company’s asset management. Their work is meant for internal use. They collect and analyze the financial information used by the management of the company and help management in making a future decision concerning the company’s work.

Career #2 – Budget Analyst

Budget analysts play an important role in the organization as they help the public and private institutions organize their finances, 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 help these institutions monitor 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 financial goalsFinancial GoalsFinancial goals are targets set by an individual to achieve financial milestones or plans. In other words, they are financial objectives that an individual wishes to accomplish within a certain time frame.read more, and finally attaining growth in the long term.

Responsibilities

  • Collect, record, organize, and analyze the internal and financial informationFinancial InformationFinancial Information refers to the summarized data of monetary transactions that is helpful to investors in understanding company’s profitability, their assets, and growth prospects. Financial Data about individuals like past Months Bank Statement, Tax return receipts helps banks to understand customer’s credit quality, repayment capacity etc.read more for evaluation of the past and present performance of the company and making projections for the future using the data.
  • Recommend ways for the company’s management to economize the cost by analyzing the costs and various implications of different production methods.
  • Assess current practices, identify potential problems, and recommend the company’s management for necessary improvements.
  • Creating and controlling the budgets of the company and managing the actual costs.
  • Help develop a competitive edge in the quality of the product, brand service, customer service, etc., for maximizing profits.

Job Statistics

  • As per the data collected by the Bureau of Labor Statistics of the United States, in 2016, there were 1,397,700 employed accountants and auditorsAuditorsAn auditor is a professional appointed by an enterprise for an independent analysis of their accounting records and financial statements. An auditor issues a report about the accuracy and reliability of financial statements based on the country’s local operating laws.read more.

Top Companies

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

Salary

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

Demand & Supply

  • The employment of accountants and auditors is expected to grow at a 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 occupations because their growth is tied to the overall economy’s health. When the economy grows, the work of accountants and auditors will increase for the need to prepare and examine financial records.

Education Requirement

  • A Bachelor’s Degree in finance, accounting, or related field.
  • Certified Public Accountant (CPA)
  • Certified Management Accountant (CMA)

Positives

  • Remuneration and the perks are high, as there is a huge demand for 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 #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 to submit the competitive contract bids of the different projects or to price the products appropriately. The cost estimator collects and analyzes the company’s data for estimating the time, money, labor, material, etc., required to manufacture the product, construct the building, or provide the services.

  • Develop the organization’s budget 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 into one organizational budget in consolidated form and then reviewing the funding requests for merit.

  • Explanation of the recommendation for the funding request to the other concerned person.

  • Monitoring the organization’s spending to ensure they are within the budget as prepared by the company.

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

  • Ivy Exec, Deloitte, the MIL Corporations

  • Budget Analyst’s median annual pay per year 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 $ 49,860, and the highest 10 % earned more than $ 116,300.

  • Employment of the Budget analyst is expected to grow at the rate of 7 % 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 as fast as the average of all occupations. As there is the demand for the efficient use of the public funds at all levels, this leads to the continued demand for budget analystsThe Budget AnalystsBudget Analyst is a professional data-oriented person. He/she organizes and allocates various financial resources (Income from business/profession, interest income from bank deposits, profits from trading in stocks or shares) by monitoring each spending on an estimation basis and then produces probable surplus/deficit from the said calculations.read more.

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

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

  • Certified Public Accountant (CPA)

  • Master of Business Administration (MBA)

  • High earning as there is a huge demand for Budget analysts.

  • Good employment

  • Job stability

  • Long working hours.

  • Traveling is required for getting the information.

  • Overtime is sometimes required, especially during the final budget reviews.

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 –

  • Go through the blueprints or the other technical documents to prepare the estimates.

  • Identification of the factors which affect the costs of the company.

  • Collect, calculate, adjust, and analyze 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 for the company to reduce the overall costs.

  • It maintains the records of the estimated costs and the company’s actual costs.

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

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

  • 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 $ 38,060, and the highest 10 % earned more than $ 107,940.

  • Employment of the cost estimator is expected to grow at 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 occupations due to the increasing demand for the cost estimator because of the need of the companies for accurate cost projections to make sure that their products or services are profitable. The construction industry growth is also expected to create most new jobs for the cost estimator.

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

  • High earning as there is a huge demand for the cost controller.

  • High job opportunities being the role is important for every organization.

  • Handle the pressure as many things are to be managed in different company areas.

  • Long working hours with stress.

  • Financial Accounting Career ScopesFinancial Accounting Career ScopesFinancial accounting career aspirants can become financial accountants, auditors, financial managers, controllers, management accountants and financial analysts. The candidates having degrees in the accounting or related fields perform various responsibilities like budgeting, analyzing data for management action, and preparing financial statements.read moreCareers in AuditingCompare – Cost Accounting vs. Management Accounting