In
business
Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
, a cost analyst is a professional responsible for analyzing a
company
A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common p ...
's
cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which ...
s, or the use of available resources, and reports such
analysis
Analysis ( : analyses) is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (38 ...
to
management
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business.
Management includes the activities o ...
for decision-making and control.
Additional to
cost analysis
In Production (economics), production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one o ...
generally, specific work includes
whole-life cost
Whole-life cost is the total cost of ownership over the life of an asset. The concept is also known as life-cycle cost (LCC) or lifetime cost, and is commonly referred to as "cradle to grave" or "womb to tomb" costs. Costs considered include the f ...
analysis and
cost–volume–profit analysis
Cost–volume–profit (CVP), in managerial economics, is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run decisions.
Overview
A critical part of CVP analysis is the point where total revenu ...
.
This role usually sits within the company's
financial management
Financial management is the business function concerned with profitability, expenses, cash and credit, so that the "organization may have the means to carry out its objective as satisfactorily as possible;"
the latter often defined as maximizin ...
area in general; sometimes, specifically, in "
FP&A
A financial analyst is a professional, undertaking financial analysis for external or internal clients as a core feature of the job.
The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, ...
" (Financial planning and analysis).
See also under ,
profitability analysis, and
budget analyst.
Cost analysts require a strong background in
cost accounting
Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, al ...
methods, and typically hold a
business degree
A business school is a university-level institution that confers degrees in business administration or management. A business school may also be referred to as school of management, management school, school of business administration, or ...
majoring in accountancy, or sometimes, the more focused
Bachelor of Accountancy
The Bachelor of Accountancy, also known as Bachelor of Accounting, is the principal academic degree in accountancy in several countries, and is often the only (undergraduate) degree recognised for subsequent practice as a professional accountant ...
.
Due to the specialized nature of the role, cost accountants often also hold a relevant
professional certification
Professional certification, trade certification, or professional designation, often called simply ''certification'' or ''qualification'', is a designation earned by a person to assure qualification to perform a job or task. Not all certifications ...
:
Globally recognized, are the
CMA through
IMA, and the
CGMA through
CIMA.
Other regional bodies include
ICAI in India, and
ICMA in Australia.
See .
Financial analysts
Costs
Financial data analysis
Finance_occupations
Management accounting
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