Cost Accounting is a type of Managerial Accounting that focuses on determining the total cost of production or service of an enterprise by analyzing both the variable costs and the fixed costs and looking into all expenses in the supply chain.
The purpose of Cost Accounting is to provide profitability analysis to be used by the company’s decision-makers. The data obtained from these analyses are useful for the upper management in determining which products or services are doing well and which one needs development.
Course Overview: Cost Accounting
Cost Accounting is also critical in the preparation of budgets. It determines the break-even point, and more importantly, the profit.
Furthermore, Cost Accounting includes the determination of variances which involves the comparison of the actual outputs of processes with the budgeted or predicted outcomes of the processes within the system.
In addition, this helps a company to determine the need to adjust other aspects of the business and help the company maximize its resources.
Cost Accounting also helps a company control its cash outflows through strategically controlling expenses and providing significant inputs in determining the sales price of the company’s products.
Moreover, Cost Accounting also helps in inventory management by providing a standard for valuing inventories in different levels of development or the different parts of the production process.
In addition, one of the main targets of cost accounting is to effectively control the cost of the company in producing its products and services. Moreover,
The various types of costs are fixed costs, variable costs, operating costs, direct costs, and indirect costs.
By having a deeper understanding of the different types of costs in the manufacturing process, the company will be able to control its costs and maximize its earning potential by allowing the business to come up with a competitive pricing scheme for its finished goods.
Who Is This For?
The cost accounting job is ideal for those who have a bachelor’s degree in Accounting. Likewise, those who have some work experience in the Accounting field are suitable.
The usual role of a Cost Accountant is to provide relevant contributions to the planning process, collection of data, review of data for the manufacturing process and other activities involved with the business for the effective and efficient use of a company’s resources.
The course is ideal for those people who have interests in data analysis, product designing, and product planning. It is likewise suitable for people who want to learn report preparation and skills improvement.
Generally, people with good observation skills and those who have a keen eye for perfection are a good fit for the course because duties assigned to cost accountants involve the monitoring of inputs, processes, and outputs of products in a manufacturing firm.
Moreover, this course is ideal for those who want to improve their communication and financial reporting skills.
Finally, the course will help future cost accountants with the proper steps in preparing clear and accurate reports for stakeholders. These stakeholders will be making decisions that will greatly affect the firm’s operations and growth.
Career Earning Potential
Overall, a cost accounting career is an exciting profession that does not only allow for professional growth but also pays well.
Generally, for fresh graduates with zero experience in the related field, the salary for cost accountants in 2019 is approximately $49,250.
Moreover, cost accountants who’ve been practicing the profession for more than one to three years get a salary of $62,750.
Lastly, senior cost accountants in 2019 approximately receive a salary of $78,750.
In 2019, those in the management level, cost accountants receive a salary of more or less $93,250.
Career After This Course
Frequently, many companies in the manufacturing and construction industry are aggressively recruiting cost accountants. These companies need them to help monitor and oversee inventory, purchasing, labor, and production costs.
Also, most of the cost accounting graduates can either get a career in different offices of government agencies by assisting the company in planning, monitoring and controlling its costs for government projects.
Furthermore, some other graduates may apply for private firms offering assistance to consultancy businesses.
Immediately, after getting a significant amount of working experience in cost accounting, one may also independently work as a part-timer for those small firms with limited financial resources to hire a full-time cost accountant.
Demand for This Profession
According to the US Bureau of Labor Statistics, due to business growth and replacement deficiency, the job market for Cost Accounting will be quite strong.
It is projected that by 2024, more than 498,000 accounting jobs will be created and needed to be filled.
Cost accountants are expected to be in demand by 6% more from the year 2018 – 2028.
1. How can this help me in real life?
Generally, the course helps improve or equip students with skills in data analysis, budgeting, variance analysis, and controlling cost. In addition, these skills will help a student learn to handle their finances better. Also, the course will also help encourage them to prepare budgets. This will inspire them to follow their budgets and determine the reasons for the variances in their budgets.
2. How can this course help me when I go to work?
Generally, students who will be starting a career in accounting, it is better to know the different branches of accounting.
Furthermore, this will provide flexibility to the entry-level employees who are still exploring their career paths.
3. Aside from the other great opportunities with this course, will this course help me acquire a managerial position in the future?
Usually, the course involves planning and preparing budgets primarily for the production process of manufacturing businesses. Likewise, preparing plans and budgets is a difficult task that requires a person making or co-making them to have significant experience. Therefore, the course can help improve a person’s planning and budgeting skills.
Where to Get Free Online Cost Accounting Courses
Accounting Coach offers free courses, though they have a pro version with a one-time fee of $49 or $99 if you want a certificate – a small price to pay considering the earning potential. Check out their cost accounting courses with certificates.
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