What does a cost accounting manager do?
A cost accounting manager is responsible for analyzing and evaluating pricing and costing systems of the goods and services of an organization, ensuring its adherence to the internal guidelines and state regulations. Cost accounting managers review business and financial transactions to generate accounting reports for management reference. They also identify business opportunities that would provide revenue resources and profits by monitoring industry trends and public demands. A cost accounting manager must have excellent analytical skills and accounting principles knowledge, especially in resolving account and expense discrepancies.
Cost accounting manager responsibilities
Here are examples of responsibilities from real cost accounting manager resumes:
- Manage the monthly analysis of variances which include PPV, MUV, substitution and labor.
- Lead ERP system integration team and restructure manufacturing accounting system of newly acquire facility.
- Manage payroll and all taxation matters, coordinate independent audit; communicate with outside organizations and agencies.
- Direct the development, administration, and standards necessary to maintain financial controls in compliance with GAAP and SOX.
- Provide financial management of inventories for multiple facilities to include book-to-physical account reconciliations, inventory projections and reduction plans.
- Maintain standard cost integrity including annual standard changes, inventory valuation, monthly closings, account reconciliations and annual budgeting.
- Review and approve month end revenue recognition accruals.
- Complete accruals for freight, accounts payable and capital expenditures.
- Formulate & administer cost policies and procedures which bring company into compliance with government and GAAP regulations.
- Control all the general accounting support activities including the A/P, A/R, G/L and fix asset functions.
- Maintain general and subsidiary ledgers, payroll, accounts payable and receivable, sales product and end equipment cost.
- Perform daily oversight of fund administrators who maintain official accounting records for the U.S. and offshore domicile mutual funds.
- Cost accounting, job costing, preparing production parts estimates, payroll tax reconciliation, bank reconciliation, special projects.
- Prepare inventory-related SOX controls monthly and quarterly.
- Analyze ERP system performance and make recommendations for improvements.
Cost accounting manager skills and personality traits
We calculated that 5% of Cost Accounting Managers are proficient in Variance Analysis, Financial Analysis, and Reconciliations. They’re also known for soft skills such as Organizational skills, Analytical skills, and Communication skills.
We break down the percentage of Cost Accounting Managers that have these skills listed on their resume here:
- Variance Analysis, 5%
Maintained General Ledger, performed variance analysis, recorded journal entry adjustments; recommended improvements to management.
- Financial Analysis, 5%
Provided financial analysis of manufacturing plants and products to management - working with VP of Manufacturing to analyze his performance.
- Reconciliations, 4%
Maintained standard cost integrity including annual standard changes, inventory valuation, monthly closings, account reconciliations and annual budgeting.
- Financial Reports, 4%
Provided analyses of variances, maintained multiple general ledgers, prepared monthly financial reports and annual budgets for the manufacturing facility.
- Product Cost, 4%
Created the standard product costing system for all manufactured items, improving inventory valuation accuracy and eliminating an audit issue.
- ERP, 4%
Supported ERP system requirements, operations, SOX Compliance/documentation, quarterly audit for Public Company.
Most cost accounting managers use their skills in "variance analysis," "financial analysis," and "reconciliations" to do their jobs. You can find more detail on essential cost accounting manager responsibilities here:
Organizational skills. One of the key soft skills for a cost accounting manager to have is organizational skills. You can see how this relates to what cost accounting managers do because "because financial managers deal with a range of information and documents, they must have structures in place to be effective in their work." Additionally, a cost accounting manager resume shows how cost accounting managers use organizational skills: "reorganized headquarters and cost accounting group to meet organizational goals and realize cost savings. "
Analytical skills. Another soft skill that's essential for fulfilling cost accounting manager duties is analytical skills. The role rewards competence in this skill because "to assist executives in making decisions, financial managers need to evaluate data and information that affects their organization." According to a cost accounting manager resume, here's how cost accounting managers can utilize analytical skills in their job responsibilities: "prepared, analyzed and distributed margin, inventory valuation and other reports. "
Communication skills. This is an important skill for cost accounting managers to perform their duties. For an example of how cost accounting manager responsibilities depend on this skill, consider that "financial managers must be able to explain and justify complex financial transactions." This excerpt from a resume also shows how vital it is to everyday roles and responsibilities of a cost accounting manager: "relocated to stryker communications in san diego to create and develop the cost accounting function and identify inventory controls and procedures. ".
Detail oriented. For certain cost accounting manager responsibilities to be completed, the job requires competence in "detail oriented." The day-to-day duties of a cost accounting manager rely on this skill, as "in preparing and analyzing reports, such as balance sheets and income statements, financial managers must be precise and attentive to their work in order to avoid errors." For example, this snippet was taken directly from a resume about how this skill applies to what cost accounting managers do: "maintain detailed inventory valuation records, which are reconciled to actual inventory counts on a semi-annual basis. "
Math skills. A commonly-found skill in cost accounting manager job descriptions, "math skills" is essential to what cost accounting managers do. Cost accounting manager responsibilities rely on this skill because "financial managers need strong skills in certain branches of mathematics, including algebra." You can also see how cost accounting manager duties rely on math skills in this resume example: "developed cost database including management statistics, variance analysis, and cost corrections. "
The three companies that hire the most cost accounting managers are:
- Robert Half23 cost accounting managers jobs
- Northpoint17 cost accounting managers jobs
- Elevance Health
15 cost accounting managers jobs
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Compare different cost accounting managers
Cost accounting manager vs. Division controller
A division controller is typically in charge of overseeing a company division's financial activities and human resources operations. Their role is to set objectives and guidelines, perform audits and assessments, evaluate the workforce performance, handle budgets and timelines, and develop strategies to optimize processes. They must monitor the progress of activities and projects, producing regular reports and presentations to keep the executives informed. Furthermore, as a division controller, it is essential to lead staff and implement the company's policies and regulations.
These skill sets are where the common ground ends though. The responsibilities of a cost accounting manager are more likely to require skills like "product cost," "cost analysis," "balance sheet," and "accruals." On the other hand, a job as a division controller requires skills like "cpa," "oversight," "financial data," and "balance sheet accounts." As you can see, what employees do in each career varies considerably.
Division controllers earn the highest salaries when working in the construction industry, with an average yearly salary of $105,362. On the other hand, cost accounting managers are paid more in the manufacturing industry with an average salary of $89,769.On average, division controllers reach similar levels of education than cost accounting managers. Division controllers are 3.4% more likely to earn a Master's Degree and 0.2% less likely to graduate with a Doctoral Degree.Cost accounting manager vs. Finance controller
A financial controller is primarily in charge of the daily finance activities and accounting functions of a company. Their responsibilities typically revolve around preparing and organizing financial reports, analyzing data and looking out for any discrepancies or inconsistencies, and overseeing the company's overall revenues and expenditures. A financial controller must also maintain documentation, participate in risk assessment and budgeting activities, and develop strategies for profit growth. Furthermore, one must coordinate with other department staff to ensure accuracy, all while implementing the company's policies and regulations.
Each career also uses different skills, according to real cost accounting manager resumes. While cost accounting manager responsibilities can utilize skills like "product cost," "balance sheet," "goods sold," and "product line," finance controllers use skills like "cpa," "financial controller," "strong analytical," and "financial data."
Finance controllers earn a higher average salary than cost accounting managers. But finance controllers earn the highest pay in the technology industry, with an average salary of $119,209. Additionally, cost accounting managers earn the highest salaries in the manufacturing with average pay of $89,769 annually.Average education levels between the two professions vary. Finance controllers tend to reach higher levels of education than cost accounting managers. In fact, they're 5.4% more likely to graduate with a Master's Degree and 0.2% less likely to earn a Doctoral Degree.Cost accounting manager vs. Plant controller
A plant controller works at factories where they are primarily in charge of administrative duties and ensuring that operations adhere to budgets, schedules, and standards. As a plant controller, they are also responsible for gathering and analyzing financial data, analyzing cost reports, preparing financial statements, maintaining databases, performing audits and risk assessments, and overseeing the accounting team procedures. Additionally, they also supervise staff operations and address issues and concerns while implementing the company's policies and regulations.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from cost accounting manager resumes include skills like "product cost," "balance sheet," "goods sold," and "kpi," whereas a plant controller is more likely to list skills in "continuous improvement," "financial performance," "strong analytical," and "plant operations. "
Plant controllers earn the best pay in the finance industry, where they command an average salary of $111,014. Cost accounting managers earn the highest pay from the manufacturing industry, with an average salary of $89,769.When it comes to education, plant controllers tend to earn similar degree levels compared to cost accounting managers. In fact, they're 3.4% more likely to earn a Master's Degree, and 0.2% more likely to graduate with a Doctoral Degree.Cost accounting manager vs. Finance leader
The duties of a finance leader depend on one's place or industry of employment. Typically, their responsibilities revolve around monitoring the sales and financial operations in a company, preparing financial reports and statements, finding new sales opportunities, identifying the market and client needs, and maintaining records of all financial transactions. There are also instances where a finance leader may set and allocate budgets, perform audits in costs and expenditures, all while implementing the company's policies and regulations.
Types of cost accounting manager
Updated January 8, 2025
