Role of Cost and Management Accountancy (CMA)
What is Cost Management in Accounting?
Cost management in accounting is a form of management accounting that is designed to help business owners predict how much business expenses. The purpose of this form of accounting is to avoid going over budget so that businesses can hold onto as much of their revenues as possible. If you would like to work in management accounting and you are trying to learn more about cost management and planning budgets, read on and find out what you need to know about cost management plans within the over-all business model.
What is Involved in Cost Accounting?
Cost accounting will help businesses determine the costs of products, projects, processes to ensure that financial reports and statements are as accurate as possible. It also helps executives and authorized members of management make the most informed decisions when they are financial planning or deciding on the best long-term moves for the organization.
To see the big picture, the accounting professionals will record the cost of inventory, manufacturing, goods sold, and overhead operations. After this is reported, the expert in cost accounting and management will then analyze the cost behavior so that they are able to see the cost-volume-profit relationships and how it relates to the existing budget, according to Accounting coach.
How to Become a Cost Accountant
The very first step to becoming a cost accountant in charge of budget management is to earn a formal certification in accounting from a program by Institute of Cost Accountants of India (ICAI). The stages for becoming a cost accountant:
- Foundation Level - (Eligibility +2 Pass)
- Intermediate Level - (Eligibility Any Degree or Foundation Level completed)
- Final Level – (Eligibility Intermediate pass)