What is the role of a cost accountant in a manufacturing organization?
When I worked at a home manufacturing company the cost accounting section took up a large part of the accounting department. This company built neighborhoods with four or so floorplans for customers to choose from. Cost accountants entered invoices which could be applied to a specific neighborhood project. Very important job as it allowed the company to see profitability by project. There wasn't a lot of analysis in this position though, that was passed up to the staff accountant to put on a report then controller to actually interpret. Because of this I saw the position as entry level. They hired college graduates for the role so they could move up to higher level accounting positions.
What are the roles of a cost accountant in a business?
ROLE OF A COST ACCOUNTANT IN A MANUFACTURING ORGANISATION:A cost accountant in a manufacturing organisation plays several important rolesi. He establishes a cost accounting department in his concern.ii. He ascertains the requirement of cost information which may be useful to organisationalmanagers at different levels of the hierarchy.iii. He develops a manual, which specifies the functions to be performed by the cost accounting department. The manual also contains the format of various forms which would be utilised by the concern for procuring and providing information to the concerned officers. It also specifies the frequency at which the cost information would be supplied to a concerned executive.Usually, the functions performed by a cost accounting department includes -cost ascertainment, cost comparison, cost reduction, cost control and cost reporting.. Cost comparison is the task carried out by cost accountant for controlling the cost of the products manufactured by the concern. Cost accountant of the concern establishes standards for all the elements of cost and thus a standard cost of the finished product. The standard cost so determined may be compared with the actual cost to determine the variances. Cost accountant ascertains the reasons for the occurrence of these variances for taking suitable action.c. Cost analysis may also be made by cost Accountant for taking decisions like make or buy and for reviewing the current performance.d. Cost accountant also plays a key role in the preparation of cost reports. These reports help the executives of a business concern in reviewing their own performance and in identifying the weak areas, where enough control measures may be taken in future.In brief, one may say that there is hardly any activity in a manufacturing organisation with which a cost accountant is not directly associated in some form or the other.In brief, one may say that there is hardly any activity in a manufacturing organisation with which a cost accountant is not directly associated in some form or the other.
What is the role of a cost accountant in a hotel?
I have interned as Cost and AR accountant in Intercontinental Hotel before. this is a large hotel chain worldwide.from my experience, Cost accountant keeps track of all costs/expenses of hotel's business. Without them, hotel manager cant make further decisions.on daily basis Cost accountant will receive report of purchase ( from Purchasing dept) to keep track of price, quantity, condition of goods coming in. this needs to be updated frequently because hotel restaurant order new material every few days such as food and drink. they cant delay this because food cant be stored in house for a long time.they also will process orders from other depts of the hotel (mostly stationaries for paperwork and any towers, toothbrushes.. all those things provided for guests) and send to Purchasing again to make order with outside suppliers.At the end of month they will usually go to physical storage of kitchen/bar to check on month-end stock. this includes counting, scaling stocks and even measure wine percentage in opened wine bottles. quite tedious.in my hotel of about 300 rooms theres only 3 Cost accountants.
Do all accountants know how to do taxes?
It all depends on what you are interested in. Accounting majors typically enjoy business mathematics and the role accounting systems play in a modern business. Accounting requires an in-depth knowledge of how accounting systems are structured and implemented. Understanding these systems requires an ability to focus on details, remember the many federal and state laws that control such systems, and a broader view of how business organizations function. A CPA (Certified Public Accountant) is basically someone who has passed a certification exam. Most people with accounting degrees have a general understanding of how taxes work and are required to take tax courses in college. Complex tax situations might require the help from a tax expert. In order to advance through a public accounting firm they usually want you to become certified. You also would make more money with a CPA license. If you put forth the required effort nothing is hard to achieve especially an accounting degree. By no way are recent graduates fully knowledgeable about tax law but generally have a good understanding to complete simple to moderate tax returns. Only choose to major in accounting if you are interested in the subject material.
What are the role of cost accounting in strategic costing and management control?
Cost Accounting is the basics to build strategic management controls. Basic cost accounting knowledge helps in strategic decision making. Although, I wouldn’t say one can’t take strategic decision without knowing basic cost accounting.
How do cost accounting and cost management differ?
Management accounting collects data from cost accounting and financial accounting. Thereafter, it analyzes and interprets the data to prepare reports and provide necessary information to the management.On the other hand, cost books are prepared in cost accounting system from data as received from financial accounting at the end of each accounting period.The difference between management and cost accounting are as follows:The main objective of cost accounting is to assist the management in cost control and decision-making.The primary objective of management accounting is to provide necessary information to the management in the process of its planning, controlling, and performance evaluation, and decision-making.2. Cost accounting system uses quantitative cost data that can be measured in monitory terms.Management accounting uses both quantitative and qualitative data. It also uses those data that cannot be measured in terms of money.3. Determination of cost and cost control are the primary roles of cost accounting.Efficient and effective performance of a concern is the primary role of management accounting.4. Success of cost accounting does not depend upon management accounting system.Success of management accounting depends on sound financial accounting system and cost accounting systems of a concern.5. Cost-related data as obtained from financial accounting is the base of cost accounting.Management accounting is based on the data as received from financial accounting and cost accounting.6. Provides future cost-related decisions based on the historical cost information.Provides historical and predictive information for future decision-making.7. Cost accounting reports are useful to the management as well as the shareholders and creditors of a concern.Management accounting prepares reports exclusively meant for the management.8. Only cost accounting principles are used in it.Principals of cost accounting and financial accounting are used in management accounting.9. Statutory audit of cost accounting reports are necessary in some cases, especially big business houses.No statutory requirement of audit for reports.10. Cost accounting is restricted to cost-related data.Management accounting uses financial accounting data as well as cost accounting data.
Why do people prefer to be a chartered accountant than a cost accountant, whereas both are equivalent? Is there not much of a career in being a cost accountant?
Every one is constantly decreasing the value of icwa course. I am currently pursuing CMA final course under 2016 syllabus. I have seen the syllabus of ICWA and CA are almost same. some of friends written over here that ICWA are specialized in costing and cost audit and allied discipline. But, I would like to mention here that have you saw the syllabus correctly. If you see correctly then you would not written this type of sentence over here. Why I am saying this , as per 2016 syllabus there are 8 papers divided in two groups. In group 3 we have to study corporate law, strategic financial management, business management, direct taxation including international taxation. Now come to group 4 it start with cost audit, indirect tax, business valuation and performance management and last but not the list is accounts. Now tell me icwa teach it’s student only costing and allied discipline? We have to study all the aspects of commerce field. Even more math are involve in icwa than ca. icwa student have to know legal field, management field, taxation field, sfm field, audit field,accounts field,costing field,business valuation and performance management field. Please remember that CMA are management accountant they are not merely an accountant , they are not just dealing with balance sheet , statement of p/l, and cash flow statement they are proactive accountant who can give suggestion to BOD or CEO or CFO about what went wrong and how one can over come from a problem. The value of cost accountant is increasing day by day due to market competitions and more over inflation. so every organisation is now concerned about their cost effective. This can only done by cma. Cma can take you every operation in an organisation. Business decisions and future decision can be done by cma. Cma curriculum is as per international level. some of our institute members are holding top position in MNC,PSU and PUBLIC sector. ICICI head chandar kochar is a cost accountant she takes ICICI in a high level. so before writing any thing on social networking you should have ample knowledge about fact. I have do respect regarding CA profession. It is not qualification it is knowledge that takes you into higher position.
What is the average day for an accountant like?
There are different types of accountants. You can work for a public accounting firm or a private company. In public accounting, you will probably be an auditor (basically check the numbers other people report), which could also include traveling around the country/world depending on your firm's clients. Another part of public accounting is doing taxes; either for individuals or other companies In private accounting, there are a couple of different routes you can take. First you can work in the financial part of the company. This would include reporting on the income and financial standing of the company. There is also cost accounting if you work for a manufacturing company. You would work with the budgets, cost to make products, etc. I have only worked in the private accounting world. For me, I like things to make sense- one plus one equals two and when it doesnt, figuring out what went wrong and why. One pro to the private accounting is that we do not have the crazy schedules most of the time that public accountants do (espically during tax season!). We don't make as much money through from what I can tell, but I am ok with that. Pros to being an accountant is 1. there are actually different types of accountants so if you dont like the traditional accountant role, there are still options 2. You have the opportunity to make lots of money (public) 3. There is a need for accountants out there, making finding a job after graduation pretty easy 4. If you get an internship as an accountant, they are paid internships which I am sorry, when I was in college, was important to me. Con- 1. You dont get to be creative that much. So you will have to find other ways to get your creative itch out of you. 2. It can be boring. Some days/weeks are very boring Hope that helps!
What is the scope of cost accountant practicing individually?
There is enormous scope for Chartered Accountants as well as Cost accountants. But unfortunately, the small and medium practise is not recognised by the Government. Most of the tenders floated by the State and Central Government prefer only multi partner multiple branch Chartered Accountant / Cost accountant firm.As a result, individual practitioners are left only with micro, small and medium enterprises in the private sector, and if they have been in practise for long, then a couple of Statutory Bank Branch Audits. This has made life difficult for many individual practitioners, who find that their revenue from about 1 week of statutory bank branch audit is almost equal to rest 51 weeks of professional assignments.To break this, there is a need for Chartered Accountants as well as cost accountants from different parts of the country to come together and form multi branch multi partner Chartered Accountant Firm, multi branch multi partner Cost Accountant firm respectively.Candidates who are neither partner nor qualified paid assistant in any CA / CWA firm, and not in employment in industry, and willing to be part of multi partner multi branch Chartered Accountant / Cost accountant firm, can send their profile to the email id indicated in my profile. True, the revenues does not start immediately. But the pace of increase in revenues can accelerate in such firms after some gestation period.