Cost accountant job description
/What is a Cost Accountant?
A cost accountant is someone who analyzes the cost structure of a business and extracts actionable information that can improve the profitability of a business. This person’s work includes the analysis of process constraints, target costing projects, margin analysis, and tracing costs back to underlying activities. The cost accountant must also construct and monitor the data accumulation systems needed to provide an appropriate level of costing information to management.
Principal Accountabilities of a Cost Accountant
The main accountability of a cost accountant are as follows:
Data Collection Responsibilities
Construct data accumulation systems for a cost accounting system
Create and review the controls needed for data accumulation and reporting systems
Inventory Responsibilities
Coordinate physical inventory counts and cycle counts
Investigate cycle counting variances and resolve issues
Update standard costs in the bill of materials
Review standard and actual costs for inaccuracies
Validate the cost of goods sold as part of the month-end close
Revise the reserve for obsolete inventory as needed
Accumulate and apply overhead costs as required by generally accepted accounting principles
Work with the materials review board to locate and dispose of obsolete inventory
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Analysis Responsibilities
Conduct ongoing process constraint analyses
Report on breakeven points by products, work centers, and factories
Report on margins by product and division
Report on periodic variances and their causes, focusing in particular on spending variances
Analyze capital budgeting requests
Perform cost accumulation tasks as a member of the target costing group
Desired Qualifications for a Cost Accountant
3+ years of accounting/finance experience, or 5+ years experience in industrial engineering. Also, a BA/BS degree, as well as excellent analysis skills, and the ability to collaborate with a multi-department team. Also helpful to have experience manipulating large databases.
Working Conditions for a Cost Accountant
The cost accountant generally works in an office environment, but is expected to be highly familiar with all production operations, and to regularly visit all significant company operations.
Commentary
Revise the job description to require the cost accountant to have either job costing or process costing experience, depending upon the manufacturing system that the company uses. Also, consider including a requirement to have knowledge of LIFO, FIFO, or standard costing, based on the system that the company is using. If the company operates in one or more foreign locations, consider including a language requirement. Finally, if the position is in an industry that requires considerable knowledge of operations, require that the person have previous experience within the industry.
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