cost accounting is a subject that arose of costing and estimating practices in engineering. Cost Accounting is usually implemented in service industries with significant results, which was earlier used only in manufacturing industry. This reflects that today this discipline is important to all modern businesses which face increase in competition. The role of a cost accountant in an organization Cost accountant is a person who determines and implements the procedures and methods required for cost accounting. The person’s responsibility lies in preparing and analysing costing reports and audits.
He has to ensure that data is correct and accurate. Cost records are reviewed and examined by the cost accountant periodically. Costing is important to determine the price of product and service in an organization. The most important role comes in deciding on the target cost of a given product. Besides, capital budgeting requires the role of Cost accountant. Role in a manufacturing firm A cost accountant analysis per unit cost of the product and helps the management of the manufacturing firm to set the cost of product and achieve the target profit.
The Essay on Role of international accounting standard board (IASB)
International accounting standard board is an independent accounting standard setting body. It was founded in 2001 to succeed international accounting standard committee with it location in London and consist of 14 members. It main role is development of accounting standards that guide the preparation and reporting of financial statement. It is also responsible for reviewing the existing standard ...
He also helps in maintaining the price of the product which may be in benefit of the people. Why they are important? A cost accountant is commonly called as Cost and Management Accountant (CMA).
He has an important role to play as his work cannot be done by an ordinary accountant. The list of services performed by a CMA include services such as costing, pricing of services and goods, verifies cost accounting and preparation of related statements. CMA essentially involves cost analysis and ways to reduce it.
CMA evaluates efficiency in operation, production and service. CMA also helps in preparation of financial statements, performances and other decisions. CMA is required to efficiently audit, which results in saving money and time. Skills required for cost accountants A cost accountant needs to be a good combination of hard and soft skills. Hard skills are basically the core or domain knowledge. The type of work he is expected do. Soft skills basically involve good communication skills along with good interpersonal skills.
Computer knowledge along with usage of financial software is a must for an individual to be cost accountant. He should have strong analytical skills which are required to evaluate a product on the basis of cost. The course of accounting should be of specific benefit to students of professional accounting. Undergraduates and postgraduate courses in business management and accounting fields are available. The knowledge of Cost Accounting principles is required and to professionals and managers who require a working knowledge of the principles of Cost Accounting can opt for it.
