Introduction : A business organization can grow well if it has a
strong accounts department. Moreover, it is the
accounts department which can draw up a good
resource utilization programme and cost saving
mechanism so that the profit margin of the company
can be increased. Cost and management accountancy in
particular is one subject which deals with this
problem and helps in evaluating and managing costs.
It finds its origin way back in the II world war
period when the need to evaluate defense cost was
felt. These days, in fact, it has attained greater
significance, especially in the corporate sector
Personality : As cost and management accounting deals with the
cost and benefit analysis of a product or service,
it demands analytical and attentive mindset with an
objective outlook. Fair amount of awareness about
global economic conditions is important. The CMAs
often deal with making future projections and
forecasts regarding the prices, costs etc. which
makes it important to have good judgmental
qualities. The job also involves interacting and
working with a number of people and to coordinate
with them requires, good communication skills and
team spirit.
WANT TO BE
A COST & MANAGEMENT ACCOUNTANT?
Scientific
Management has recognized cost & management accountancy as one
of the essential management services. The Cost & Management
Accountant aids in stabilizing budgets and standards,
evaluating operational efficiency and effectiveness of
production, formulating profit planning programme, guiding
managerial decisions and identifying accountability for cost
and profit variances. He advises on provident planning,
product pricing, inventory control, export potentiality,
feasibility studies, investment proposals, marketing and
finances. He has a crucial role in project management, control
of operations and strategic management of funds, monitoring
and analysis of data and judicious budgeting, which are
important in ensuring quality in corporate functions.
HOW TO BECOME A COST & WORKS
ACCOUNTANT?
To become a Cost & Works Accountant, you need not even attend
classes; you need not pass any entrance examination or try to
seek admission in any regular college. After 10+2 or PDC, you
can start the training through the postal tuition offered by
the Institute of Cost & Works Accountants of India.
Nature of Work : The role and importance of cost and management
accountants has increased manifold on account of
growing competition in the corporate sector. Broadly
speaking, their job comprises of closely analyzing
costs and devising ways to reduce it as far as
possible. Cost and management accounting helps in planning,
monitoring and controlling the cost and price of a
product or a service. Nowadays with multi-product
ventures taking place, it has become important to
know and understand the exact cost of production of
products and services at different stages, to
minimize the expenditure incurred on them and to
ensure better utilization of money. This is where
the role of cost and management accountant comes.
Cost and management accountants evaluate the
operating efficiency and effectiveness of production
and service management by collecting, compiling,
organising, verifying, comparing and analysing
information from different departments of the
organisation. In large organisations, these
information may be made available on computer based
systems specially designed to systemize the work.
The process involves critical monitoring of relevant
costs and overheads like material, labour, capital
costs etc., involved in making a product or
providing a service. They analyse the sales trend to
strike a balance between the demand and supply, to
prevent over production. They also monitor the
performance, to spot and report on problems and
prevent them from occurring in future. This analysis
helps in comparing the financial performances,
making assessments and projections, providing
figures for future costing and pricing policies and
other managerial decisions.
Professional Course : Cost and management accountancy can be pursued
after 10+2. The course comprises of three stages:-
Foundation, Intermediate and Final. These stages are
further discussed separately in the following
segment.
- FOUNDATION: Candidates who have passed senior secondary under
10+2 scheme in any discipline shall pass a
Foundation Course Examination to become eligible
as a student for Intermediate Examination. The
Foundation Course has the following subjects.
- Business Fundamentals and Economics Management and Organization Basic Mathematics and Statistics
- Commercial Laws
- INTERMEDIATE: Candidates who are 17 years of age and have
completed graduation in any discipline or those
who have cleared the Foundation Examination are
eligible for registration for the Intermediate
Examination. It is obligatory for registered
students to undergo either postal or oral tuition
imparted by the Institute before appearing for the
Intermediate and Final Examinations. The following
are the subjects in the Intermediate Examination.
GROUP I:
- Financial Accounting Cost Accounting Corporate Laws and Secretarial Practice
- Direct Taxation
GROUP II
- Cost and Management Accounting Auditing Indirect Taxation
- Quantitative Methods
- FINAL: After
clearing the Intermediate Examination, students
are eligible to appear for the Final Examination.
The subjects in the Final Examination are
GROUP I
- Advanced Financial Accounting
- Information Technology and Computer
Applications
- Operations Management and Control
- Project Management and control
GROUP II
- Advanced Management Accounting - Techniques
and Applications
- Advanced Financial Management
- Advanced Management Accounting - Strategic
management
- Cost Audit
Specialization : After successfully clearing all the papers of
both Intermediate and Final Examinations, students
can apply for the Associate ship of the Institute.
Students having practical experience of 3 years in
fields of financial/cost accounting and commercial
aspect of an industry can apply for the
Associate ship.
Career Prospects : A qualified Cost Accountant leaves for himself,
plenty of career options. The recognition granted by
central and state governments has added to their
career prospects. The importance of the profession
in economic development of the country has led to
their involvement in advising the government in cost
and pricing policies and also in framing of tax and
fiscal policies. They are treated at par with other
class - I services. In organizations like Railways,
Indian Army, Nationalized Banks services of Cost
Accountants are often required for costing,
budgeting, auditing purposes. They can also pursue
teaching in various universities as Professors,
Readers, Lecturers.
Apart from the opportunities available in the
government sector, Cost Accountants can also look
forward to the corporate world. They can work as
executers, administrators, appraisers, values,
secretarial and tax consultants, advisors etc. With
advancement in career and experience, they can even
rise to top positions like Financial Auditor,
Financial Advisor, Finance Director etc.
It is not a bad idea for Cost Accountants to
build up their own practice. Cost Accountants can
set up their own practice either individually or in
partnership, after obtaining license from the
Institute. The clients in a private practice may
vary depending upon the size of practice. It may
range from large public and private companies to
small partnership and proprietor concerns.
JOB OPPORTUNITIES: The significance
of the profession of Cost & Works Accountant has considerably
increased as a result of the trends visible after economic
liberalization. The significant role played by the Cost
Accountant in achieving business objectives is being
appreciated more and more. Several members of the Institute of
Cost & Works Accountants of India hold top management
positions in the corporate sector. Many industries have been
covered under the statutory maintenance of cost accounting as
per the Companies Act. The Cost Accountant can offer his
services for acting as trustee, executor, administrator,
arbitrator, receiver, appraiser, advisor, secretary or as a
representative for financial matters including taxation. He
can take up appointment that may be made by the Central/State
Government, Courts of Law, Labour Tribunals or other legal
authorities. Developing countries also offer opportunities of
employment to qualified Cost Accountants. A Cost Accountant
can build up his own practice or join hands with other members
of the Institute of Cost & Works Accountants forming
partnership ventures.
