What does a cost analyst do?
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 analyst responsibilities
Here are examples of responsibilities from real cost analyst resumes:
- Manage general ledger expense accounts assign to ERP implementation project.
- Develop, maintain financial models/applications (VBA Excel/Access) to automate and streamline business processes and perform financial analysis.
- Perform cost control, revenue analysis and variance analysis for several DOD contracts.
- Identify parts that need to be realign to correct WBS s in order to bring costs inline.
- Ensure that purchase orders and work orders are setup in accordance with establish DuPont procedures and appropriate WBS structures.
- Perform fixed asset and manufacturing accounting within ERP system.
- Finance activity includes responsibility for monthly general ledger expense accruals.
- Administer logistics skills and supply chain management by calculating and planning shipments.
- Review production, usage and accruals for pharmaceutical manufacturing and out-source departments.
- Reconcile project labor hours versus Deltek timekeeping to ensure billing accuracy and avoid unbil costs.
- Create logistic models to identify optimal international logistics to increase profitability with improve service to customers.
- Collaborate with departments to ensure billing accuracy, maintain accounts receivables, and assist with customer account reconciliations.
- Perform weekly/periodic physical inventory reconciliations.
- Create and distribute weekly process order settlement issues list for feedback from operations; monitor age WIP orders.
- Develop a monthly cost report for the EPC contract.
Cost analyst skills and personality traits
We calculated that 8% of Cost Analysts are proficient in Cost Analysis, Financial Analysis, and Cost Estimates. They’re also known for soft skills such as Writing skills, Analytical skills, and Communication skills.
We break down the percentage of Cost Analysts that have these skills listed on their resume here:
- Cost Analysis, 8%
Performed cost analysis of all current products, identified and implemented process improvements, and performed time studies to ensure profitability.
- Financial Analysis, 6%
Performed financial analysis for a rapidly growing information management company in the health care industry.
- Cost Estimates, 6%
Developed, analyzed, and reviewed cost reports within government contract requirements including defending cost estimates and interpreting budgetary policies.
- Data Analysis, 4%
Consolidate performance data to support performance measurement, earned value data analysis, and cost forecasting.
- DOD, 4%
Developed and implemented purchasing and inventory policies and procedures to meet DOD guidelines.
- Variance Analysis, 4%
Finish Cost Department Budget Planning Cost Savings & Expense Variance Analysis Customer Credit & Debit Analysis Inventory Count & Reconciliation Ledger Reconciliation
Common skills that a cost analyst uses to do their job include "cost analysis," "financial analysis," and "cost estimates." You can find details on the most important cost analyst responsibilities below.
Writing skills. To carry out their duties, the most important skill for a cost analyst to have is writing skills. Their role and responsibilities require that "budget analysts must present written technical information in a way that is understandable to the intended audience." Cost analysts often use writing skills in their day-to-day job, as shown by this real resume: "prepared and analyzed monthly cost data in order to support cams in writing variance explanations. "
Analytical skills. Another essential skill to perform cost analyst duties is analytical skills. Cost analysts responsibilities require that "budget analysts must be able to process a variety of information, evaluate costs and benefits, and solve complex problems." Cost analysts also use analytical skills in their role according to a real resume snippet: "developed, maintained and provided technical support for automated cost model to analyze all new business proposals. "
Communication skills. cost analysts are also known for communication skills, which are critical to their duties. You can see how this skill relates to cost analyst responsibilities, because "budget analysts must be able to explain and defend their analyses and recommendations in meetings and legislative committee hearings." A cost analyst resume example shows how communication skills is used in the workplace: "developed a cross-check cost estimate for a multi-million dollar communications satellite program using advanced earned value management (evm) techniques. "
Detail oriented. cost analyst responsibilities often require "detail oriented." The duties that rely on this skill are shown by the fact that "creating an efficient budget requires careful analysis of each budget item." This resume example shows what cost analysts do with detail oriented on a typical day: "provided contract deliverables to customers and senior management which included financial reports, financial forecast changes, proposals and invoice details. "
Math skills. A commonly-found skill in cost analyst job descriptions, "math skills" is essential to what cost analysts do. Cost analyst responsibilities rely on this skill because "budget analysts need math skills and the ability to use financial-management software and programs." You can also see how cost analyst duties rely on math skills in this resume example: "developed quantitative and analytical cost models. "
The three companies that hire the most cost analysts are:
- Cornerstone49 cost analysts jobs
- Northrop Grumman10 cost analysts jobs
- JLL8 cost analysts jobs
Choose from 10+ customizable cost analyst resume templates
Build a professional cost analyst resume in minutes. Our AI resume writing assistant will guide you through every step of the process, and you can choose from 10+ resume templates to create your cost analyst resume.
Compare different cost analysts
Cost analyst 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.
While similarities exist, there are also some differences between cost analysts and finance analyst/accountant. For instance, cost analyst responsibilities require skills such as "cost estimates," "dod," "project management," and "cost models." Whereas a finance analyst/accountant is skilled in "general ledger accounts," "external auditors," "balance sheet accounts," and "cpa." This is part of what separates the two careers.
Finance analyst/accountants really shine in the finance industry with an average salary of $78,897. Comparatively, cost analysts tend to make the most money in the automotive industry with an average salary of $76,426.finance analyst/accountants tend to reach similar levels of education than cost analysts. In fact, finance analyst/accountants are 2.4% more likely to graduate with a Master's Degree and 0.1% less likely to have a Doctoral Degree.Cost analyst vs. Cost accounting manager
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.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that cost analyst responsibilities requires skills like "cost estimates," "data analysis," "dod," and "project management." But a cost accounting manager might use other skills in their typical duties, such as, "balance sheet," "goods sold," "external auditors," and "direct reports."
Cost accounting managers earn a higher average salary than cost analysts. But cost accounting managers earn the highest pay in the manufacturing industry, with an average salary of $89,769. Additionally, cost analysts earn the highest salaries in the automotive with average pay of $76,426 annually.cost accounting managers earn similar levels of education than cost analysts in general. They're 2.4% more likely to graduate with a Master's Degree and 0.1% more likely to earn a Doctoral Degree.What technology do you think will become more important and prevalent for cost analysts in the next 3-5 years?
Miguel Vicens
Associate Dean of School of Business, Associate Professor of Finance, Western New Mexico University
Cost analyst vs. Business & finance analyst
A financial business analyst is also referred to as a business analyst who recommends and enforces corporate efficiency and profitability methods. Financial business analysts analyze the business model and finances of an organization. Their findings serve as the source of their suggestions to improve businesses' budgeting, management, and overall operations. They have the ability to predict the outcome of the decisions made by enterprises. The skills necessary for this job include interpersonal skills, management experience, financial reporting, and strong communication skills.
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 analyst resumes include skills like "cost estimates," "dod," "project management," and "cost models," whereas a business & finance analyst is more likely to list skills in "shared services," "business process," "financial models," and "hyperion. "
Business & finance analysts earn the best pay in the finance industry, where they command an average salary of $82,379. Cost analysts earn the highest pay from the automotive industry, with an average salary of $76,426.When it comes to education, business & finance analysts tend to earn higher degree levels compared to cost analysts. In fact, they're 9.6% more likely to earn a Master's Degree, and 0.1% more likely to graduate with a Doctoral Degree.Cost analyst vs. Cost engineer
A cost engineer is responsible for projecting cost and expenses reports for the production process, identify and mitigate risks, and develop strategic techniques to reduce the excessive financial loss for project buildings. Cost engineers conduct data and statistical analysis to measure time deliverables and quality checks to ensure profitability and adherence to business objectives. They research and negotiate materials from trusted suppliers and vendors with high-quality products that would meet construction designs and client specifications.
Even though a few skill sets overlap between cost analysts and cost engineers, there are some differences that are important to note. For one, a cost analyst might have more use for skills like "data analysis," "dod," "pivot tables," and "strong analytical." Meanwhile, some responsibilities of cost engineers require skills like "construction management," "construction projects," "design changes," and "cost management. "
Cost engineers enjoy the best pay in the energy industry, with an average salary of $101,020. For comparison, cost analysts earn the highest salary in the automotive industry.cost engineers reach similar levels of education compared to cost analysts, in general. The difference is that they're 1.7% more likely to earn a Master's Degree, and 0.1% more likely to graduate with a Doctoral Degree.Types of cost analyst
Updated January 8, 2025
