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What does a Cost Accountant do?

Updated January 8, 2025
8 min read
Quoted Expert
Terri Walsh
What does a Cost Accountant do

A cost accountant specializes in determining the total cost incurred by a company from producing goods and services. Through the various financial data they collect, the cost accountant will devise plans and strategies that will be a vital factor in the next budget and marketing preparations of a company. Aside from this, a cost accountant is responsible for various tasks such as conducting research and analysis in different areas, keeping financial records and inventory, producing financial reports involving profitability and expenditures, and proposing a budget and other financial plans.

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Cost accountant responsibilities

Here are examples of responsibilities from real cost accountant resumes:

  • Manage ledgers and perform month end journal entries.
  • Manage the payroll with ADP system and account receivable.
  • Manage costing control as well as accounts payable (A/P) and accounts receivable (A/R).
  • Prepare internal financial reports for treasury manage accounts include in external compliance reports.
  • Prepare raw material and WIP inventory reconciliations.
  • Develop tracking of GAAP inventory valuation for all inventory inherit from the bankrupt former company.
  • Post and correct journal entries in AS400.
  • Monitor the status of incoming supplies and submit payment requests for all logistics services.
  • Report monthly status for various DOD contracts, using various rates, contract and corporate stipulations.
  • Provide research assistance to Dr. Carol Moore s DoD inflation index and price escalation improvement research project.
  • Play key role in new ERP implementation, which include the process of documentation for the new system.
  • Work with other inventory business units, logistics, and billing systems to ensure inventory item information and transactions are accurate.
  • Prepare cost accruals and job profitability analyses.
  • Perform weekly WIP analysis and book monthly consignment inventory adjustments.
  • Prepare production material usages entries that include inter-company invoices and accruals.

Cost accountant skills and personality traits

We calculated that 9% of Cost Accountants are proficient in Reconciliations, Variance Analysis, and GAAP. They’re also known for soft skills such as Organizational skills, Analytical skills, and Communication skills.

We break down the percentage of Cost Accountants that have these skills listed on their resume here:

  • Reconciliations, 9%

    Generated manufacturing variance analyses and inventory reconciliations.

  • Variance Analysis, 6%

    Manage cost accounting function including quarterly standard cost updates, variance analysis, inventory reserve analysis, and inventory turns reporting.

  • GAAP, 4%

    Developed tracking of GAAP inventory valuation for all inventory inherited from the bankrupt former company.

  • Account Reconciliations, 3%

    Reported to the Controller with responsibilities in managing Fixed Assets, payroll preparation and reconciliation and Balance Sheet account reconciliations.

  • Cost Analysis, 3%

    Develop cost-control measures and proposals to Controller and Plant Manager based on cost analysis such as cost variance reports generated regularly.

  • Financial Analysis, 3%

    Develop custom applications and reports for customers/users based on their needs and specifications, as well as management financial analysis reports.

Common skills that a cost accountant uses to do their job include "reconciliations," "variance analysis," and "gaap." You can find details on the most important cost accountant responsibilities below.

Organizational skills. To carry out their duties, the most important skill for a cost accountant to have is organizational skills. Their role and responsibilities require that "strong organizational skills are important for accountants and auditors, who often work with a range of financial documents for a variety of clients." Cost accountants often use organizational skills in their day-to-day job, as shown by this real resume: "specialized in strategic financial analysis to support organizational needs. "

Communication skills. Another skill that relates to the job responsibilities of cost accountants is communication skills. This skill is critical to many everyday cost accountant duties, as "accountants and auditors must be able to listen to and discuss facts and concerns from clients, managers, and other stakeholders." This example from a resume shows how this skill is used: "analyze global inventory data by product line sub-categories for comments used in monthly reviews and communication with high-level management. "

Detail oriented. For certain cost accountant responsibilities to be completed, the job requires competence in "detail oriented." The day-to-day duties of a cost accountant rely on this skill, as "accountants and auditors must pay attention to detail when compiling and examining documents." For example, this snippet was taken directly from a resume about how this skill applies to what cost accountants do: "generate accurate and detailed bill of materials for five different product lines, and maintain inventory valuation. "

Math skills. Another common skill required for cost accountant responsibilities is "math skills." This skill comes up in the duties of cost accountants all the time, as "accountants and auditors must be able to analyze, compare, and interpret facts and figures." An excerpt from a real cost accountant resume shows how this skill is central to what a cost accountant does: "review and analysis of financial statements analyzed product lines prepared and analyzed capital budgets monthly key statistics and flash reports"

See the full list of cost accountant skills

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Compare different cost accountants

Cost accountant vs. Accounting analyst

An accounting analyst is responsible for supporting the accounting operations of an organization, analyzing financial transactions and financial statements, and resolving account discrepancies. Accounting analysts interpret financial data by consolidating account transactions, performing account reconciliation, and managing account receivables. They also assist in preparing and releasing invoices, issuing billing statements, and creating comprehensive financial reports on the company's budget and expenses. An accounting analyst must have excellent knowledge of the accounting principles and disciplines, as well as extensive analytical and communication skills to perform duties and meet deadlines under minimal supervision.

The annual salary of accounting analysts is $2,129 lower than the average salary of cost accountants.While their salaries may differ, the common ground between cost accountants and accounting analysts are a few of the skills required in each roleacirc;euro;trade;s responsibilities. In both careers, employee duties involve skills like reconciliations, variance analysis, and gaap.

While similarities exist, there are also some differences between cost accountants and accounting analyst. For instance, cost accountant responsibilities require skills such as "powerpoint," "cycle counts," "inventory control," and "wip." Whereas a accounting analyst is skilled in "customer service," "payroll," "pivot tables," and "hr." This is part of what separates the two careers.

Accounting analysts tend to make the most money working in the finance industry, where they earn an average salary of $66,550. In contrast, cost accountants make the biggest average salary, $63,357, in the energy industry.The education levels that accounting analysts earn slightly differ from cost accountants. In particular, accounting analysts are 1.1% more likely to graduate with a Master's Degree than a cost accountant. Additionally, they're 0.0% more likely to earn a Doctoral Degree.

Cost accountant vs. General ledger accountant

A general ledger accountant is in charge of ensuring the accuracy of a company's overall accounting processes and information. It is their responsibility to communicate with different departments and officials to gather necessary data, conduct extensive audits, prepare documentation and reports, maintain financial data on the company ledger, and interpret financial information. Furthermore, like a general ledger accountant, it is essential to monitor the progress of accounting processes, all while implementing the company's policies and regulations.

On average, general ledger accountants earn a $494 lower salary than cost accountants a year.Only some things about these jobs are the same. Take their skills, for example. Cost accountants and general ledger accountants both require similar skills like "reconciliations," "variance analysis," and "gaap" to carry out their responsibilities.

Each career also uses different skills, according to real cost accountant resumes. While cost accountant responsibilities can utilize skills like "account reconciliations," "cost analysis," "powerpoint," and "cycle counts," general ledger accountants use skills like "payroll," "asset system," "cpa," and "erp."

General ledger accountants earn a lower average salary than cost accountants. But general ledger accountants earn the highest pay in the technology industry, with an average salary of $68,134. Additionally, cost accountants earn the highest salaries in the energy with average pay of $63,357 annually.In general, general ledger accountants achieve similar levels of education than cost accountants. They're 1.2% more likely to obtain a Master's Degree while being 0.0% more likely to earn a Doctoral Degree.

What technology do you think will become more important and prevalent for Cost Accountants in the next 3-5 years?

Terri WalshTerri Walsh LinkedIn Profile

Professor/Program Manager, Accounting, Seminole State College of Florida

I think EXCEL is a must for all business graduates, especially for accounting graduates, but often they have not been exposed to much of it in their degree. Besides, with technology continually changing, a dual major in accounting and information technology will be sought after, so I recommend a bachelor's degree accounting major NOT pursue an MBA, but an information technology degree or programming data. The rise of Big Data and issues surrounding cybersecurity risks will require the accounting profession, and accounting roles, to rely more on students with strong computer skills and logic/analytical thinking. As mentioned before, they will need to master EXCEL, as spreadsheets are widely used in accounting and are the foundation for more advanced software. We are already seeing TABLEAU being used in accounting books, even in the foundational courses which have EXCEL already. There is powerful interrogation software, such as IDEA and ACL, which can pull data from multiple sources; and knowing these tools or their capabilities will be required in the future. Also, strong technological skills need to be communicated once data is retrieved, and this will require persuasive writing and verbal skills.

Cost accountant vs. Finance analyst/accountant

In a company setting, a finance analyst/accountant is in charge of handling and monitoring financial activities, ensuring efficiency and accuracy. Their responsibilities revolve around preparing financial reports, performing audits and risk assessments, and identifying any errors and inconsistencies, resolving them promptly and efficiently. They also conduct research and analysis to identify new business opportunities, evaluate the existing procedures to determine its strengths and weaknesses, and recommend solutions to optimize operations for financial growth. Furthermore, as a finance analyst/accountant, it is essential to uphold the company's policies and regulations, including its vision and mission.

On average, finance analyst/accountants earn higher salaries than cost accountants, with a $2,447 difference per year.By looking over several cost accountants and finance analyst/accountants resumes, we found that both roles require similar skills in their day-to-day duties, such as "reconciliations," "variance analysis," and "gaap." But beyond that, the careers look very different.

There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, a cost accountant is likely to be skilled in "powerpoint," "cycle counts," "inventory control," and "wip," while a typical finance analyst/accountant is skilled in "payroll," "cpa," "pivot tables," and "income statement."

Finance analyst/accountants earn the highest salary when working in the finance industry, where they receive an average salary of $78,897. Comparatively, cost accountants have the highest earning potential in the energy industry, with an average salary of $63,357.finance analyst/accountants typically earn similar educational levels compared to cost accountants. Specifically, they're 4.3% more likely to graduate with a Master's Degree, and 0.1% more likely to earn a Doctoral Degree.

Cost accountant vs. Cost analyst

Cost Analysts are employees with a strong background in finance or accounting. They are in charge of collecting financial data and analyzing the entries. They study the company's expenses and prepare pertinent reports. Cost Analysts look for inconsistencies in the financial data. This way, they can assist in auditing the company's spending. Cost Analysts also look for inefficiencies. They do so by tracking item costs and department budgets and monitoring department expenses. They are also involved in budget-setting activities.

Cost analysts tend to earn a lower pay than cost accountants by an average of $6,370 per year.While their salaries may vary, cost accountants and cost analysts both use similar skills to perform their duties. Resumes from both professions include skills like "reconciliations," "variance analysis," and "gaap. "While some skills are required in each professionacirc;euro;trade;s responsibilities, there are some differences to note. "general ledger accounts," "powerpoint," "cycle counts," and "close process" are skills that commonly show up on cost accountant resumes. On the other hand, cost analysts use skills like data analysis, dod, project management, and cost models on their resumes.In general, cost analysts earn the most working in the automotive industry, with an average salary of $76,426. The highest-paying industry for a cost accountant is the energy industry.The average resume of cost analysts showed that they earn similar levels of education compared to cost accountants. So much so that theyacirc;euro;trade;re 1.9% more likely to earn a Master's Degree and less likely to earn a Doctoral Degree by 0.0%.

Types of cost accountant

Updated January 8, 2025

Zippia Research Team
Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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