In
business, a cost analyst is a professional responsible for analyzing a
company's
cost
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 ...
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 (3 ...
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 ...
for decision-making and control.
Additional to
cost analysis 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.
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 maximizi ...
area in general; sometimes, specifically, in "
FP&A" (Financial planning and analysis).
See also under ,
profitability analysis
In cost accounting, profitability analysis is an analysis of the profitability of an organisation's output. Output of an organisation can be grouped into products, customers, locations, channels and/or transactions.
Description
In order to per ...
, and
budget analyst
A budget is a calculation play, usually but not always financial, for a defined period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including time, costs and expenses, environmenta ...
.
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 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 accountan ...
.
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
The Institute of Chartered Accountants of India (ICAI) is India's largest professional accounting body under the administrative control of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory bod ...
in India, and
ICMA Icma is the name of one or more mountains in Peru.
ICMA may refer to:
* Institute of Cost and Management Accountants
* International Cement Microscopy Association
* International Capital Market Association
* International Card Manufacturers Asso ...
in Australia.
See .
Financial analysts
Costs
Financial data analysis
Finance_occupations
Management accounting
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