How To Become A Cost Accountant In India

Cost Accountants can mean different things to different organizations, but the overall job is to see the budget of the organization. The budget of the organization comprises operational costs and purchasing costs. 

School Level Preparation

If a student decides to pursue a career as a cost accountant at the high school level, then they can choose any subject except fine arts. It's not mandatory to select Mathematics Or Accounts for the entrance examination. But if you select Mathematics and Accounts it will be easier for you to clear your entrance examination and your CMA course as it is tough and requires a lot of skills and practice.

Undergraduate Preparation

Once you've completed your 10+2 and you've cleared your entrance, you're ready for the course. If you've a Graduation degree you can directly apply for CMA Intermediate but if you are not a graduate then you can start from level 1, that's CMA Foundation. The length of time it takes to complete the CMA program is determined by the level, of course, you take up.

Courses to Become a Cost Accountant

The reputed certification of Cost & Management Accountant or the Cost Accountant is given by the Institute of Cost Accountant of India. Earlier, known as Cost and Works Accountant of India is now widely known as Institute of Cost Management Accountant. There is no technical difference between ICWA and CMA.

CMA

Their CMA course is conducted in three levels as CMA Foundation, CMA Intermediate and CMA Final. Admissions in CMA can be done directly to Intermediate courses if the candidate is a graduate. If the candidate is a school pass out that is 10+2 pass out then they can take admission in the foundation course. CMA exams are conducted twice a year mainly in June and December.

CMA Course Details

Related Courses to Become a Cost Accountant

Besides the professional course of CMA, students can also pursue the following courses in Accounting.

BBA in Accounting

This course is a mixture of both finance and business, where students are taught about auditing, making financial reports and accounting. BBA in Accounting are experts in analysing data and making business decisions.

BSc Accountancy

BSc in Accountancy is related to analysis of various provisions and information of the business or the organisation. Their job role includes resource allocation, decision making and expertise in accounting.

BA in Accountancy

BA in Accountancy can be pursued by students who had Humanities, Science or Commerce in  their higher secondary education. However it is mandatory that the students have studied subjects like Accountancy, Finance, and Business studies.

BCom in Accountancy

Students who wish to do higher studies in Accountancy such as Masters in Accountancy must do BCom in Accountancy. BCom in Accountancy helps the student to get clarity in money, business and management.

MCom in Accounting

After doing BA in Accounting, BSc in Accounting, BCom in Accounting, students can pursue higher studies in MCom in Accounting. Students who have the basic knowledge about accounting and finance can pursue this course to be proficient.

MBA in Accounting

This course is specially designed for the students who have done BBA in Accounting. MBA accounting is a highly technical course.

How Much Does it Cost to Become an Accountant

Here are some of the colleges that offer Cost Accountant courses and other relevant courses. To know how much does it cost to become an accountant, follow the table given below, 

How To Become A Cost Accountant In Abroad

Apart from India, CMA (Certified Management Accountant) courses are available in many countries such as The United States, Canada, the Middle East, and Africa. 

Education Requirements -

• A Bachelor's degree in Accounting is required for an entry-level position as a Cost Accountant, and a Master's degree or a Master of Business Administration (MBA) with a focus in accounting is considered necessary for advanced positions. 
• A Bachelor's degree is typically completed in four years.
• In comparison to India, you can complete your CMA (US) (Certified Management Accountant) exams in 6–9 months. 
• There are only two exams that you must clear. 
• You will require professional assistance, which you can obtain from IPFC Academy, which is the leader in CMA (US) training.

Cost Accountant in UK

There are three levels of Cost Accountant in the UK and all three courses are conducted in computer based objective test and case study. 

Operational Level: After completion of this course students will get CIMA Diploma degree in Management Accounting.

Management level: Candidates must have qualified operational level. After completion of this course students will get CIMA Diploma degree in Management Accounting. 

Strategic level: Candidates must have completed Operational Level and Management Level. After completion of this course students will become Associate Chartered Management Accountant.

Cost Accountant in Australia

The Cost Accounting courses offered in Australia are in 2 level, 

Professional Level

• Degree in Accounting, Commerce or Finance
• Professional Qualification in Accounting 
• Degree in Business related field

Technician Level

• Degree in any field apart from accounting 
• Advanced Diploma in Accounting
• Degree in Accounting, Commerce or Finance
• Qualified in Management Accountancy

Benefits Of Career As A Cost Accountant

The benefits of career as a Cost Accountant is relatively higher than any other profession. One gets the opportunity for advancement, competitive salary in the market, and will grow in depth knowledge about tax and business law. 

Competitive Salary

A Cost Accountant with less than 5 years of experience can expect to earn around 4 LPA, while a mid-career employee can expect to earn around 6 LPA, An experienced Cost Accountant can expect to earn around 9-10 LPA. The salary is primarily determined by the company and the individual.

Job Security

A large portion of accounting work is digitized, which means it can be done online, from anywhere.If they want better income they can work abroad or they can stay in India and work online. If the candidate is experienced and proficient in his job then there is barely any chance of job-loss.

Positive Impact Of Cost Accountant

Due to the specialised education and skills of CMA, CMAs may hold top management positions in both the government and industry, such as Chairman and Managing Director, Managing Director, Finance Director, Financial Controller, Chief Financial Officer, and Cost Controller and many more roles.

Experience

Every time you work as a cost accountant, you can gain a lot of experience; it's a continuous learning process; every time you learn a strategy, a new technique, a new method, you can gain a lot of knowledge.

Is Cost Accounting a Good Career

Cost accountants are in high demand in the government, private, banking, and finance sectors, development agencies, education, training, and research, as well as the service and public utility sectors.

Do Accountants Make a lot of Money

Accountants can earn a good living depending on their location and job type; the median annual wage for an accountant in May 2023 was $73,560. Finance and insurance, management of companies and enterprises, tax preparation, and government are among the highest-paying industries for accountants.

What is the Highest-Paid Accountant

• Chief Financial Officer (CFO) Salary Range on Glassdoor: INR 60,000 – INR 70,000 Controller. Salary Range on Glassdoor: $78,000 – $155,000
• Director of Accounting Salary Range on Glassdoor: INR 88,000 – INR174,000
• Senior Accountant Tax Accountant Accounts Payable Specialist Finance Manager

What is the Role of a Cost Accountant

Cost accountants assist in the planning, budgeting, and monitoring of performance, as well as the establishment of standard unit costs and the recommendation of appropriate cost-cutting opportunities. The role is critical in determining where a company's money is being spent as well as which products, departments, or services are the most profitable.

What is the Five Main Purpose of Cost Accounting

The following are the primary goals of cost accounting:

1. Cost determination
2. Selling price determination
3. Cost control and cost reduction
4. Determining the profit of each activity
5. Assisting management in decision-making.

How Many Years Does it Take to Become a Cost Accountant

A Bachelor's degree in Accounting is required for an entry-level position as a Cost Accountant, and a Master's degree or a Master of Business Administration (MBA) with a focus in accounting is required for advanced positions. A Bachelor's degree is typically completed in four years.

Top Recruiters for CMA (Certified Management Accountant) Course

Almost all the top Companies in India hire Cost Accountant but the most reputed ones are:

Salary Of A Cost Accountant In India

The salary of Cost Accountants in both private and Government Organisation is high. Here we have collected the average salary for Cost Accountants basis Specialisation, Experience and Gender. 

Average Annual Salary

Specialization Wise

Gender Wise

Experience Wise 

Job Role Wise