Cost accountants create budgets and manage costs for a company. They typically need a bachelor's degree, but an associate's degree is acceptable in certain situations. Accountants of all types can expect median salaries of just over $70,500 per year.
The job title 'cost accountant' often designates an entry-level management accountant position. Cost accounting involves establishing a budget to manage costs and maximize profitability. The majority of such accountants hold baccalaureate degrees in accounting or finance, and many choose to voluntarily become Certified Management Accountants.
|Required Education||Bachelor's degree in accounting is standard, although an associate's degree may be sufficient for entry-level positions; a master's degree may be required by some employers|
|Other Requirements||Voluntary certification as a Certified Management Accountant (CMA)|
|Median Salary (2018)||$70,500 (for all accountants and auditors)*|
|Projected Job Growth (2018-2028)||6% growth (for all accountants and auditors)*|
Sources: *U.S. Bureau of Labor Statistics
Cost Accountant Job Overview
According to the Institute of Management Accountants (IMA), most professionals performing finance and accounting functions work inside businesses and organizations. This includes cost accountants, who help set budgets and record the costs of operations for an organization.
Cost accountants are responsible for budgeting, cost management, performance evaluation and asset management within a company or organization. They typically collaborate as part of an executive team to create a financial plan for the organization. They may work with corporate executives or heads of companies to strategically plan for a company, or they may prepare financial reports for tax authorities, creditors, stockholders and regulatory agencies.
Education Requirements for Cost Accountants
A bachelor's degree is usually the minimum requirement for a job as a cost or junior accountant, although a growing number of employers seek prospective employees with a master's degree in accounting or a Master of Business Administration (MBA) with a concentration in accounting.
Still, some companies might hire individuals who have only an associate degree or have taken accounting classes at a business school. Many individuals choose to become Certified Management Accountants (CMA), a globally recognized designation conferred by the IMA that involves an exam.
Cost Accountant Job Outlook and Salary Information
The U.S. Bureau of Labor Statistics (BLS) predicted an average job growth for accountants and auditors between 2018 and 2028, with those holding a professional designation, such as CMA or Certified Public Accountant (CPA), enjoying the best prospects. The BLS reported the median annual salary of accountants and auditors as $70,500 in May 2018.
Cost accountants may advance to higher-level positions within the management accounting world, such as accounting manager, budget director, chief cost accountant or internal auditing manager. Others eventually become chief financial officers, company controllers, treasurers or even presidents of corporations.
In order to become a cost accountant, you must earn a bachelor's degree for an entry-level position and a master's degree for advanced positions. According to the U.S. Bureau of Labor Statistics, all accountants and auditors can look forward to an average growth in job openings from 2018-2028.