Cost analyst
From Wikipedia, the free encyclopedia
In business, a cost analyst creates reports that management uses for decision-making and control. These internal reports stay within the company. In addition, companies use these reports to shape decision-making.
Due to a more competitive environment caused by technology shifts and the ‘flat world concept’, companies look to analyze their costs and shape them going forward. In that regard, they turn to their cost analysts to help determine:
- Cost for each product unit
- Methods for allocating complex processes to units to create exact unit costs
- Matching costs to customers to evaluate customer profitability
- Process improvement methods
- Performance evaluation
- Strategic and Tactical planning for new products or services
The cost analyst needs strong technical skills, interpersonal skills and he/she needs to be a team player. The cost analyst steps across functional lines to gather the needed analysis information.
The cost analyst requires a strong background in cost accounting methods. In addition, this analyst needs to understand the company’s business with the ability to communicate complex findings using an understandable manner.
The cost analyst will have an undergraduate degree and many times will hold a MBA, Master of Accountancy, Master Science in Accounting, or Master Professional Accountancy degree.
The cost analyst gains certification as a Certified Management Accountant (CMA) by taking and passing a series of exams from the Institute of Management Accountants (IMA).
