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With the rise in demand for cost accountants in the government banking sector, private sector, finance sector, education, training, developmental agencies, and research, students are inclining towards this field to get a handsome pay in their professional career.
The average income of a Cost Accountant is INR 2,50,000 per year for a fresher. Getting this amount with mere preparation in a year is challenging yet worthy. The salary increases with the growth in experience. An experienced CMA can get a salary up to INR 50,00,000 annually, if they are at the top position in an organization. Due to this, CMA has gained popularity in the last few years.
To become a CMA, a candidate must clear three levels, i.e., Foundation, Intermediate and Final. The fees for the Foundation course is INR 4,000, for Intermediate is INR 20,000 and for the Final course is INR 17,000.
To pass these exams, the candidate must obtain at least 40% marks in each paper that appeared, and must also obtain at least 50% marks in aggregate. After qualifying all these three levels, the candidate has to do 100 hours of Computer Training Programme, 7 hours of Industry Oriented Training Programme, 3 days of Communication Skills and Soft Skill programme, 15 days Modular Training, and Practical training.
To get a valid CMA certificate, the candidates must enrol themselves in the Institute of Management Accountants (IMA). This registration is crucial, and should not be ignored at any cost. The body that conducts examinations for CMAs in India is ICoAI. The Institute of Cost Accountants of India (ICoAI) is a legal professional accountancy body in India, which the Ministry of Corporate Affairs regulates, Government of India. The ICoAI predicts to become the Global Leader in Certified Management Accountancy and become a truly global professional accounting body.
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Table of Contents
- What is Cost Accounting
- What Does a Cost Accountant Do?
- How to Become a Cost Accountant
- Cost Accountant Salary in India
4.2 Cost Accountant Salary in Kolkata
4.3 Cost Accountant Salary in Mumbai
4.4 Cost Accountant Salary in Chennai
4.5 Cost Accountant Salary in Hyderabad
5.1 Experience Wise
5.2 Gender Wise
What is Cost Accounting?
- Cost accounting deals with keeping records of variable and fixed costs of a company.
- It is a form of managerial economics that targets to capture the total cost of a company.
- Cost accounting deals with all input costs linked with production, management, or other aspects, including fixed and variable costs.
- Unlike financial accounting, which is strictly followed by internal administration, cost accounting is flexible.
- As a result, it can be modified from time to time to boost the growth and development of a company.
- Cost accountants (CMAs) lead various sectors, like pharmaceuticals, metals, auto, energy, finance, IT, and many more, with their specialized knowledge in value creation and business strategy.
- Cost accountants make up the top management of different companies and hold positions like Chairman, Managing Director, Finance Director, Cost Controller, Chief Financial Officer, Financial Director, Marketing Manager, Chief Auditor, and many other crucial positions.
- Many global marketers have predicted a significant rise in the need for cost accountants is coming in the future.
- They will play a key role in expanding the industrial sector from here onwards.
- Of course, their flexibility to work under harsh conditions serves as a cherry on the cake. There is no doubt why a cost accountant is a multifaceted professional.
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What Does a Cost Accountant Do?
- The primary role of a cost accountant is to analyze and report a company's profit and loss margins.
- Cost accountants collect all sorts of cost data, including maintenance expenses.
- They determine variable costs, like operational costs, purchasing costs, etc., and fixed costs, like salaries, insurance, rents, etc.
- They have to prepare cost forecasts every month, every quarter, or year, depending upon the company's requirements.
- They must assist in keeping track of year-end and month-end closing.
- Cost accountants need to review actual and standard costs for inaccuracies.
- They play a significant role in building up data accumulation systems.
- They identify loopholes in the costs of a company and provide effective solutions for the same.
- They have to prepare budgeting reports for each department in the company.
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How to Become a Cost Accountant in India?
The role of a cost accountant varies from organization to organization. But their general duty remains the same to handle the financial aspects of a company.
- Choosing the right stream from the school days can assist a student in becoming a cost accountant.
- The student can choose any subject of their interest except fine arts.
- It is not mandatory to select accounts or commerce as the mainstream.
- After 12th, one can directly apply to become a CMA if they have qualified for the entrance test and have pursued their undergraduate degree.
- Students can start from level 1 of the CMA Foundation course without a graduation degree.
- The time taken to become a certified CMA varies from group to level in the CMA Foundation. Every year 6% to 30% of students clear the written exam of CMA.
- The Institute of Cost Accountants of India (ICAI) conducts the most rigid examination for one of the most delicate jobs in India.
There are two ways of becoming an official CMA:
First Method to Become a Cost Accountant
- Qualify Class 10
- Pass Class 12
- Appear and Qualify the Examination – Enrol for the Foundation – Computer Training & Soft Skills
- Register for Intermediate Level
- Register for Final Level
- Appear and Qualify the Examination – 15 days Modular Training - 7 days Industry Oriented Training
Second Method to Become a Cost Accountant
- Graduate/ CA CPT Pass/ CS Foundation Pass – Enrol for the Foundation – Computer Training & Soft Skills
- Appear and Qualify the Examination
- Register for Intermediate Level
- Appear and Qualify the Examination
- Register for Final Level
- Appear and Qualify the Examination - 15 days Modular Training - 7 days Industry Oriented Training
Cost Accountant Salary in India
The annual salary of a CMA varies with their levels, the company they work in, and their sector. There is no minimum or maximum wage for CMAs in India. They can get INR 30,000 to INR 1,50,000 a month, which makes CMAs one of the highest paying nationals in India. Their salaries can exceed INR 10,00,000 if they acquire top positions in the company.
The salary of a cost accountant per month in India also depends on the type, of course, they have pursued.
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Qualification Wise Salary
| Course Name | Average Annual Salary |
|---|---|
| BBA in Accounting | INR 2,00,000 to INR 5,00,000 |
| BSc Accountancy | INR 3,00,000 to INR 10,00,000 |
| BA in Accountancy | INR 3,00,000 to INR 10,00,000 |
| BCom Accountancy | INR 2,00,000 to INR 10,00,000 |
| MCom Accountancy | INR 1,80,000 to INR 2,28,000 |
| MBA in Accounting | INR 8,00,000 to INR 25,00,000 |
Cost Accountant Salary in Kolkata
- Kolkata is one of the most populated cities in India. With its growing industrial sector, demand for skilled CMAs to fulfil various requirements is also increasing.
- The average salary of a CMA in Kolkata is INR 4,90,000. In addition, they get a bonus of INR 14,000 to INR 30,000 per year.
- CMAs are paid less at entry levels than early careers.
- There are 80% men and 20% women CMAs working in Kolkata.
Check: List of Top CMA Institutes in Kolkata
Cost Accountant Salary in Mumbai
- Mumbai is rich in industries and manufacturing units.
- They require both skilled and unskilled workers to boost the growth of the state.
- The average salary of a cost accountant here is INR 5,00,000 per year.
- There are 83% men and 17% women CMAs working in this city.
- The middle and experienced level workers are paid the most in this city.
Check: List of Top CMA Institutes in Mumbai
Cost Accountant Salary in Chennai
- CMAs in Chennai are paid more than any other regional CMAs because of the competition to grab the top post in an organization.
- The average salary is INR 7,00,000 per year.
- They also get a higher bonus than any other state’s CMAs.
Check: List of Top CMA Institutes in Chennai
Cost Accountant Salary in Hyderabad
- Hyderabad is one of the biggest cities (area-wise) in India.
- The average salary of a CMA is INR 6,00,000 per year.
- The gender gap of working in an organization is 1:3, female and male respectively.
- Here, the workers are more prone to harsh industrial climates. Therefore, suffering from poor dental conditions and low eyesight.
Check: List of Top CMA Institutes in Hyderabad
Cost Accountant Average Annual Salary
The first question that comes to everyone’s mind is ‘how much will I be paid if I become a CMA’. Well, the answer depends upon your experience level, organization, location, and a little, on your gender (if you are working in a private firm).
- The starting salary of a cost accountant in India per month is INR 25,000, which is more than the salary of a Certified Public Accountant (CPA).
- This is quite natural that skilled CMAs will be paid more than their fresher counterparts, and industrial and well-developed regions will pay their CMAs more than rural or semi-developed regions.
The following categories sum up the salaries of a CMA based on different criteria:
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Experience Wise Salary
| Experience Level | Average Annual Salary |
|---|---|
| Fresher (0-1 year) | INR 2,00,000 to INR 4,00,000 |
| Mid-level (2 to 5 years) | INR 5,00,000 to INR 10,00,000 |
| Experienced (5+ years) | INR 12,00,000 to INR 25,00,000 |
Gender Wise Salary
Payscale is fixed for the government employees irrespective of their genders. Some private organizations pay both genders equally. Yet, their salary varies as under:
| Gender | Average Annual Salary |
|---|---|
| Men (fresher) | INR 2,50,000 to INR 5,50,000 |
| Men (experienced) | INR 15,00,000 to INR 30,00,000 |
| Women (fresher) | INR 2,00,000 to INR 5,00,000 |
| Women (experienced) | INR 12,00,000 to INR 25,00,000 |
Job Position Wise Salary
There are numerous posts within an organization that are handled by CMAs. Their salary also differs per their posts. Some of the major posts and their salaries include:
| Job Position | Average Annual Salary |
|---|---|
| Financial Analyst | INR 5,20,332 |
| Financial Manager | INR 10,72,519 |
| Chief Financial Officer (CFO) | INR 36,98,416 |
| Senior Financial Analyst | INR 8,17,036 |
| Accountant | INR 2,92,774 |
| Certified Management Accountant | INR 5,00,000 |
| Cost Accountant | INR 7,00,000 |
| Senior Finance Manager | INR 19,99,945 |
| Finance Director | INR 37,18,945 |
| Vice President (VP), Finance | INR 40,00,000 |
| Financial Controller | INR 24,35,000 |
| Senior Accountant | INR 4,79,685 |
| Finance Analyst | INR 5,40,449 |
| Internal Auditor | INR 5,85,549 |
Cost Accountant Top Recruiters
Following are the names of the top recruiters who recruit cost accountants in India.
| Rashtriya Ispat Nigam Limited | ONGC | SAIL |
| Godfrey Phillips India Limited | Hero MotoCorp Ltd | Accenture |
| ITC Tobacco Division | ITC Food Division | ITC Hotels |
| L&T Constructions | Wipro | Amazon |
| Nestle | Power Grid Corporation on India | Vedanta Limited |
| Cipla Ltd. | Bharat Electronics Ltd. | Galaxy Surfactants |
| National Handicapped Finance and Development Corporation | Hindustan Salts Limited | RSM Astute Consul ng Group |
| Electrosteel | Capgemini | TAX Connect |
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Scope of Career as a Cost Accountant
- If a CMA works independently, they are free to do so. However, they must check the details thoroughly in this regard.
- A certified CMA can work after completing both undergraduate and postgraduate degrees.
- He can set up his venture as a sole proprietor or with like-minded cost accountants in a partnership.
- They can fix meetings with the clients of public and private sectors and work with them accordingly.
- A certified CMA can work both independently and for the organization.
- Undoubtedly, cost accountancy edges over financial accounting. The former field is more diverse and promotional.
- Many companies look for budgeting specialists who can reduce their expenditures and bring wealth to the institution.
- CMAs promote the adoption of numerous scientific methods to boost the efficiency of the industry.
- They are the driving force in the management team. Therefore, the prominent role of the cost accountants is to lead the way of a company to achieve new heights.
Cost Accountant Salary in India: FAQs
Ques. How much does it cost to become a CMA?
Ans. It costs approximately around INR 20,000 to become a Cost Accountant in India.
Ques. Is cost accounting a promising career in India?
Ans. Cost accountants are ranked amongst the top-paid workers in India. They grab the top positions in various organizations that boost their pay scale. Promotional chances increase if you work in India’s top-leading brands. As a result, CMAs grow and earn simultaneously in their careers.
Ques. CIMA, ACCA or CMA in India?
Ans. The answer purely depends upon the interest of students. If one wants to do audit, compliance, tax, etc., they should do CA or ACCA. On the other hand, if one wants to do business or make their career in business strategies, go for CMA.
Ques. Can I do a CMA in the USA after completing a CMA in India?
Ans. Yes, one can do the same. However, check the college details and requirements where you want to pursue the course.
Ques. Which is the best place to pursue CMA in India?
Ans. Some of the top institutes are namely, IIT Bombay, DTU Delhi, Presidency College, etc.
Ques. What are the best coaching institutes for studying CMA/CA/CS in India?
Ans. Coaching institutes in Chennai, New Delhi, and Mumbai tend to produce more CMAs than any other part in India. So, one can look for the best ones according to their fee budget.
Ques. Is a professional course like CA better than CS and CMA in India?
Ans. CA deals with accounts and commerce, whereas CMA deals with business strategies and marketing. With the growing economy, CA steps ahead of CMA. However, the CA exam is more challenging than CMA.
Ques. Does a CMA have a better scope in India or the US?
Ans. CMAs will have a better scope where industries and the economy is boosting. If a CMA wants to work in industries and manufacturing units, India is the place. If a CMA wants to work off-site, then they must visit the USA.
Ques. Is the MOU between the IMA and the CMA in India renewed?
Ans. MOUs are a good sign of strengthening relations between different bodies. But, the MOU between IMA and CMA is not yet renewed.
Ques. How can I register myself for the US CMA in India?
Ans. Visit the IMA website, log in with your account and register yourself for a CMA course.
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