Attention to detail. Problem-solving and strong analytical abilities. Those are the skills of a good cost accountant. So how about the salary and job outlook? Good, too.
Organizations employ cost accountants to estimate the time, materials, cost and labor associated with products or services. Generally, a cost accountant specializes in a particular industry or type of product. They work closely with management in most companies to determine opportunities for the business to maximize profit and minimize waste.
As organizations in all industries become increasingly conscious of ways to control costs, reduce waste and increase cost efficiency, skilled cost accountant candidates are even more in demand. And their compensations are increasing as well, as you can see in Robert Half's latest Salary Guide for Accounting and Finance.
Salary Benchmarks
The average starting salary for a cost accountant at midsize companies ranges from $46,500 to $57,500 for the first year. These numbers represent a 4.5 percent increase from 2015. Cost accountants in management positions at large companies can expect to earn as much as $91,000 to $121,500, an increase of 4.7 percent over 2015.
Duties and expectations
While roles may vary based on whether a cost accountant works in a manufacturing or service industry, typical cost accountant duties and expectations include the following:
- Data collection: Cost accountants are expected to identify and quantify cost factors in the production or execution of a product or service.
- Inventory: In product-based industries, cost accountants are often responsible for managing company inventory counts. They are also in charge of tracking the cost of goods sold and calculating overhead costs.
- Analysis: Cost accountants must analyze data to recommend ways to make products and processes more efficient and cost effective. Depending on the industry, they may also work with sales teams to develop estimates and bids for clients.
Many cost accountant positions require experience in the employer’s industry or sector. A bachelor's degree is required, as well as strong mathematical skills. Experience with cost-estimating software is a plus.
Employers also commonly seek professionals who have earned designations such as the certified public accountant (CPA), chartered global management accountant (CGMA) or certified management accountant (CMA), and a master's degree in business (MBA) is highly valued for managerial roles. These credentials demonstrate a candidate's commitment to ongoing learning and expertise in specific skills relevant to cost accounting.
Additional preferred qualifications include:
- Proficiency in Microsoft Excel
- Solid communication skills
- Problem-solving skills
- Strong research capabilities
- Interpersonal skills
Source: www.accountingdegreetoday.com
