Written by Michael Feder
Reviewed by听Kathryn Uhles, MIS, MSP,听Dean, College of Business and IT
Cost accounting refers to the management of expenses that come with operating a company, such as managing budgets and evaluating financial performance to increase profits. Professionals in this role primarily work with internal parties 鈥 meaning other departments within an organization 鈥 to track, manage and reduce costs. They set standard costs of business processes like shipping, production, labor and more.
They are typically private accountants, which means they work with businesses, whereas public accountants听provide auditing, tax, advisory and consulting services to private, public or governmental agencies.
A cost accountant is just one of many finance jobs that can align with an accounting degree. Cost accounting professionals work in a variety of industries and in companies of all sizes. Almost every organization, from health service providers to online retailers, needs cost accountants.
If you are preparing to enter the accounting or finance field, learn more about cost accounting to decide whether this role is right for you.听
础听, also known as a management accountant, tracks finances related to running a business. These line items range from static expenses, like rent payments for a warehouse, to dynamic expenses, like the price of packages used for shipping orders. A cost accounting professional is similar to a bookkeeper. The main difference is that a bookkeeper also looks at income and generates balance sheets. Here are a few day-to-day tasks of cost accountants:听
Cost accounting can become more stressful toward the end of the fiscal year or the end of each fiscal quarter, when departments review their budgets and present plans for the coming months.听These professionals may use specific听听to aid in their work
Every professional uses both hard and soft skills in the modern workplace. Hard skills are specific to the role and can be taught and evaluated 鈥 like creating formulas in a spreadsheet. Soft skills are harder to teach and are often characteristics of various employees. These skills can be used across different positions and levels in the company.听
Here are a few hard skills that cost accountants need:听
Here are a few soft skills that cost accountants need:听
For example, a cost accountant might notice that one department鈥檚 expenses are increasing unexpectedly. They use critical thinking to create a hypothesis about why this is and then use data analysis to confirm their theory. They then communicate their findings and help that department听find solutions听to lower its costs.听
Cost accounting hard skills can be learned through formal education or formal on-the-job training. Soft skills take more time to develop and require constant practice.听
Whether you are new to the workforce or looking to make a career change, you can take steps today to become a cost accountant. In several ways, cost accounting is similar to the roles and responsibilities of听; those looking to begin a career in cost accounting should consider the following:听
If you are ready to return to school to pursue cost accounting, there are a few degrees to consider. Here are a few options that can give you the hard and soft skills you need:听
You don鈥檛 have to rush into a degree unless you are certain that it will support your career goals. For example, consider whether an听accounting degree or a finance degree听can give you the appropriate skills to land a job you love.听
Cost accountants鈥 salaries vary depending on where they work, their experience levels and their seniority. However, as of May 2023,听听ranging between听$50,440 and $137,280, with a median of $79,880, according to BLS. Cost accounting can be categorized as a type of听accountant听and may be able to enjoy similar earnings.
While accounting salaries have grown over the years, their future growth trajectory is unclear. Artificial intelligence and machine learning are growing in complexity, and, in time, this technology might be able to take on more accounting tasks. Effective cost accountants can increase their value 鈥 and thus their salaries 鈥 by taking on more strategic planning and analysis roles while letting AI technology take over basic data collection and rote work elements.听
Salary ranges are not specific to students or graduates of 爱污传媒. Actual outcomes vary based on multiple factors, including prior work experience, geographic location and other factors specific to the individual. 爱污传媒 does not guarantee employment, salary level or career advancement. BLS data is geographically based. Information for a specific state/city can be researched on the BLS website.
The job outlook for this field is expected to grow at an average rate compared to other occupations in the American market. According to BLS, there will be a听听in the field from 2023 to 2033, which could lead to听130,800 openings for accountants and auditors each year. This is good news for future cost accounting professionals who want to grow their careers.听
While AI is often perceived as a threat to accountants, it is also an opportunity. Cost accountants who embrace the latest software tools and tech will be able to enter more positions that already have听. Tech-friendly accountants can also modernize companies that still rely on spreadsheets to balance their books.
BLS Occupational Employment Projections, 2022-2032 is published by the U.S. Bureau of Labor Statistics. This data reflects BLS鈥 projections of national (not local) conditions. These data points are not specific to 爱污传媒 students or graduates.
If you鈥檙e interested in becoming a cost accounting professional, 爱污传媒 (UOPX) can help. The University offers a Bachelor of Science in Accounting degree that prepares you with financial skills to help organizations run efficiently. The cost accounting skills taught in the program include performance management, budgeting, capital asset selection, inventory control and more. If this sounds like the degree for you, visit the 爱污传媒 website to learn how UOPX can help you save time and money on your education.听
A graduate of Johns Hopkins University and its Writing Seminars program and winner of the Stephen A. Dixon Literary Prize, Michael Feder brings an eye for detail and a passion for research to every article he writes. His academic and professional background includes experience in marketing, content development, script writing and SEO. Today, he works as a multimedia specialist at 爱污传媒 where he covers a variety of topics ranging from healthcare to IT.
Currently Dean of the College of Business and Information Technology,听Kathryn Uhles has served 爱污传媒 in a variety of roles since 2006. Prior to joining 爱污传媒, Kathryn taught fifth grade to underprivileged youth in 爱污传媒.
This article has been vetted by 爱污传媒's editorial advisory committee.听
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