What Does A Cost Accountant Do?

WHAT DOES A COST ACCOUNTANT DO?

Overview Job Description Resume Cover Letter Skills Roles

Published: August 22, 2024 - The Cost Accountant facilitates month-end closing activities, meticulously preparing journal entries, management reports, and account reconciliations. Rigorous cost and gross margin analyses are conducted, developing insightful ad-hoc reports by synthesizing information and trends. Expert review of production order activities and inventory valuations ensures financial accuracy and compliance, contributing significantly to strategic financial planning and operational efficiency.

A Review of Professional Skills and Functions for Cost Accountant

1. Cost Accountant Duties

Costing Methodology Enhancement: Partnering with the Corporate Cost Accounting team to enhance the costing methodology.
Inventory Oversight: Overseeing periodic inventory counts and developing inventory processes and controls.
BOM Development Collaboration: Collaborating with the manufacturing teams to develop accurate bill of materials for manufactured products.
COGS Accuracy Assurance: Ensuring accurate capture and coding of cost of goods sold related to cultivation and manufactured products.
Inventory Reconciliation: Reconciling inventory timely as part of the month-close process.
Inventory Procedure Streamlining: Streamlining inventory procedures and creating consistent reports.
Costing Review: Reviewing costing, measuring results, and comparing to budget.
Material Requirements Communication: Communicating with purchasing on material requirements.
Cost Absorption Analysis: Analyzing cost absorption and performing variance analysis.
Management Recommendations: Providing recommendations to management on improving yields, reducing costs, and increasing efficiencies.
Intercompany Inventory Management: Managing and reconciling intercompany inventory transactions.
Cost BOM Accuracy: Ensuring accuracy of cost BOM and routings.
Manufacturing Cost Analysis: Analyzing costs in manufacturing, R&D, and distribution.
Margin Analysis Maintenance: Maintaining customer and brand margin analysis.
Financial Reporting Assistance: Helping with financial reporting and analysis, budgets, forecasts, and other projects in Supply Chain Finance.

2. Cost Accountant Details

Production Cost Analysis: Build, track, and analyze actual costs of production on a consistent basis.
Cost Standards Management: Manage and maintain cost standards and bills of material for work-in-process and finished goods.
Inventory Accuracy Responsibility: Responsible for inventory accuracy including cycle counts and annual physical audit.
Costing Model Development: Develop costing models for items in production to ensure profitability.
Profitability Analysis: Measure, analyze, and interpret profitability by business segment.
Daily Cost Analysis: Performs daily analysis on labor, yields, material usage, and overhead.
Budget Preparation: Prepare a monthly budget and forecasts for the cost of cold goods.
Inventory Audit Responsibility: Responsible for inventory accuracy including cycle counts and physical audits.
Work Order Management: Responsible for completion of work orders and order fulfillment.
Journal Entry Preparation: Prepares monthly journal entries and assists in month-end close of the general ledger.
Policy and Procedure Development: Develops policies and procedures for all accounting activities.
Special Analysis Preparation: Prepares special analysis and assumes other special activities.
Ad-Hoc Reporting: Develop, maintain, and distribute ad-hoc reports and financial models.
Cost and Labor Analysis Oversight: Oversee company product costs and labor reporting and analysis to help make key business decisions and also drive process/reporting improvements.

3. Cost Accountant Responsibilities

Cost Accounting System Maintenance: Maintain company's cost accounting system and make recommendations for improvements.
Inventory Costing Assistance: Assist with tracking and costing of inventory and outsourced production costs.
Cost Development and Review: Develop and review standard and actual costs.
Accounts Payable Management: Daily A/P procedures, including matching invoices, verifying approvals, and posting journal entries.
Payment Processing: Weekly/bi-weekly processing of T&E, credit card, vendor payments, and payroll activities.
Financial Reporting: Monthly preparation of month-end journal entries and analysis/reconciliation of G/L accounts.
Budget Development Assistance: Assist with development of annual budget.
Fixed Asset Tracking: Track fixed assets, including monitoring capital expenditure projects.
Expense Analysis and Forecasting: Analyze departmental expenses and assist with forecasting.
Management Reporting: Report, analyze, and interpret financial and operating data for management.
Process Improvement Leadership: Drive process improvement projects, such as automation of A/P, T&E processing, reporting.
Company-Wide Initiative Participation: Participate in various company-wide improvement initiatives.
LEAN Process Improvement: Seek opportunities to improve current processes and eliminate waste (LEAN).
Inventory Management: Inventory management (proper assessment, reserve establishment, and validation).
Audit Support: Support the year-end audit by providing working papers and analysis around costing elements.
Cross-Departmental Collaboration: Building strong working relationships with Sales Finance, Supply Chain, Production, Marketing, and Trade Spend.

4. Cost Accountant Accountabilities

Variance Report Creation: Creating a monthly variance report from standard to actual manufactured costs to support monthly financial reporting.
Cost Savings Support: Supporting the costings team leader in identifying, quantifying, and implementing cost-saving initiatives.
Cost Investigation: Investigating any cost changes with operational departments and subsequently calculating and reporting the impact to finance.
BOM Change Tracking: Supporting tracking and assessing the impact of subsequent changes to BOMs after initial setup or budget assumptions.
BOM and Labor Audit Performance: Performing BOM audits as well as labor process audits including the routine timing of production processes.
KPI Report Generation: Generating daily KPI reports which are used to measure operational performance including labor efficiency & waste reporting.
Costing Process Ownership: Understanding, documenting, and taking ownership of costing processes, Bill of Materials (BOMs), labor routings while ensuring robust and disciplined policies and procedures are implemented and followed.
Efficiency Challenge: Challenging the status quo and driving efficiency in process and reporting.
Stock Analysis Assistance: Assisting in the analysis of stock at quarter end; to derive a reasonable stock valuation as well as supporting the quarterly stock take process, any other tasks reasonably within the capability of the job holder.
Productivity Tracker Maintenance: Maintaining, preparing, analyzing, and taking ownership of productivity tracker reporting.
Month-end Process Completion: Completing all month-end processes related to the facility.
AP Invoicing Review: Reviewing all AP invoicing to ensure coding is accurate and in adherence to Corporate standards.
Operations Reporting Preparation: Preparing monthly, quarterly, and annual Operations packages, as well as Ad Hoc analysis for the Plant Manager, Controller, and Corporate Offices.

5. Cost Accountant Functions

Stakeholder Relationship Building: Build relationships with key stakeholders and business partners in Finance and throughout the organization.
Analytical Model Development: Leverage systems, reports, data, Excel, and relationships to build analytical models and identify business drivers related to key strategic initiatives.
Ad-Hoc Analysis Engagement: Engage in ad-hoc analyses and reporting as needed to support the growth and development of the business.
Strategic Business Support: Support business and business unit teams in developing strategy & executing critical analyses.
Budgeting Process Assistance: Assist in the budgeting and planning process supporting business unit leadership.
Business Intelligence Utilization: Utilize and enhance business intelligence and planning tools.
Leadership Recommendation Creation: Create recommendations around key business issues to present to Senior Leadership.
Standard Costing System Maintenance: Assist in the maintenance of the Company’s standard costing system.
Capital Expenditure Tracking: Track and report on capital expenditures.
Financial Validation Assistance: Assist in the analysis and validation of financial results.
AR and AP Support: Support AR and AP accounting functions.
Accounting Issue Resolution: Investigate and resolve accounting issues when they arise.
Cross-functional Team Collaboration: Collaborate/Engage with other cross-functional teams.
Monthly Reconciliation Preparation: Prepare monthly reconciliations ensuring accuracy in reporting and ledger maintenance.

6. Cost Accountant Job Description

Standard Cost Establishment: Establishing standard costs and rates for material, labor, and overhead.
Cost Variance Analysis: Reviewing standard versus actual cost variances related to manufacturing orders.
Margin Analysis: Analyzing cost of goods sold and reporting on margin performance by item, product line, customers, etc.
Inventory Analysis: Analyzing inventory and ensuring appropriate reserves for excess and obsolete items.
Balance Integrity Assurance: Ensuring on-hand balance integrity by auditing cycle count programs and wall-to-wall physical counts, analyzing root causes of discrepancies, and suggesting corrective actions.
Reserve Level Management: Ensuring an appropriate level of reserves to cover possible loss/shrinkage.
Variance Report Generation: Generating Purchase Price Variance reports and assisting the Supply Chain group in analyzing results.
Account Reconciliation: Maintaining and reconciling balance sheet accounts to supporting documentation.
Journal Entry Preparation: Preparing monthly journal entries.
New Product Cost Review: Ensuring that new product releases are reviewed for reasonable cost prior to activation.
Consigned Goods Tracking: Tracking and appropriately valuing consigned goods in possession and/or at supplier or customer sites.
Audit Interaction: Interacting with internal and external auditors in completing audits.
Cost Review: Reviewing costing for current products, looking for cost savings.
Product Costing: Costing new products and developing or improving methods of calculating and controlling costs.

7. Cost Accountant Overview

Plant Performance Reporting: Provide timely plant performance results, interpret analysis, recommend solutions to drive improvements within a collaborative environment to drive accountability.
Forecasting and Budgeting Leadership: Lead plant level forecasting and budgeting process on a monthly basis (Rolling 18-month forecast).
Audit Support and Compliance: Provide audit support and ensure compliance with all accounting policies and procedures.
Standard Costing Establishment: Establish standard costing rates and partner with Operations to update material cost, BOM, and routings for cost.
Month-End Closing Activities: Perform month-end closing activities including preparing journal entries, management reports, and account reconciliations.
Cost and Margin Analysis: Prepare cost and gross margin analysis and ad-hoc reports by analyzing, reviewing, and summarizing information and trends.
Production and Inventory Analysis: Conduct reviews and analysis related to production order activity, spending variances, and inventory valuation accuracy.
Manufacturing Cost Forecasting: Develop monthly manufacturing cost and absorption forecasts based on forecasted demand.
Financial Control Development: Create and review controls necessary for data accumulation and cost and labor reporting.
Financial Reporting Analysis: Analyze financial reports and GAAP compliance for financial statements.
Financial Statements Preparation Assistance: Assist with the preparation of Financial Statements and budgets.
Employee Training Assistance: Assist in the training of new employees and verify the accuracy of accounts.
Inventory Control: Control finished goods and raw material inventories.
Journal Entries and AP Management: Prepare monthly journal entries and accounts payable back-up.
Accounting System Monitoring: Monitor and review accounting and related system reports for accuracy and completeness.

8. Cost Accountant Details and Accountabilities

Overhead Rate Management: Developing and maintaining appropriate overhead rates for specific locations.
Inventory Reconciliation: Reconciling and reviewing inventory accounts to ensure accuracy.
Production Variance Monitoring: Monitoring production variances and educating shop personnel to minimize them.
Gross Profit Analysis: Performing monthly gross profit reviews of jobs to ensure that costs are correctly recognized.
Estimate vs. Actual Support: Providing support for Estimate vs. Actual reporting.
Spending Review: Reviewing and presenting monthly shop spending reports.
Month-end Reporting: Submitting month-end reports.
TRAC Process Management: Managing the full TRAC process, liaising with colleagues to collate the relevant data.
TRAC Compliance: Ensuring the process complies with the latest TRAC requirements.
Costing Information Production: Producing course costing information and updating the dashboard (Power BI).
Costing Assistance: Assisting team members and colleagues with understanding costing results.
Resource Allocation Reporting: Producing the resource allocation model (internal management report).
Senior Management Reporting: Preparing and presenting reports for senior management.

9. Cost Accountant Tasks

Variance Monitoring and Reporting: Monitor, analyze, and report on variances from the production process including labor and overhead utilization and efficiency, purchase price variance, material usage, and scrap.
Standard Cost Analysis: Perform periodic calculation and analysis of standard costs.
Labor and Overhead Rate Review: Review and assess labor and overhead rates.
Routing and BOM Accuracy Maintenance: Maintain accuracy of routings and bill of materials.
Cost Report Analysis: Analyze and interpret costing reports and variances.
Inventory Reserve Analysis: Conduct quarterly inventory reserve analysis.
Cycle Count Investigation: Investigate cycle count variances and resolve issues.
Inventory Reconciliation: Perform monthly reconciliations of the perpetual inventory.
Gross Margin Analysis: Provide monthly gross margin analysis.
Year-End Inventory Support: Assist in year-end inventory count and analysis.
Plant Management Support: Support plant management and finance team.
Operational Reporting: Provide operation with weekly VOH and total flex report to support cost control at manufacturing site.
Balance Sheet Reconciliation: Prepare BS reconciliation relating to inventory and warranty.
Audit Coordination: Coordinate costing related issues for the purpose of internal and external audit.

10. Cost Accountant Roles

Material Cost Analysis: Continually analyze material costs.
Cost Variation Analysis: Analyze cost variations (PPVs, backflushes, subcontracting, RMA's, RTV's, and scraps).
SAP Order Creation: Create internal orders in SAP to recover costs by different customers (NRE).
Inventory Reporting Review: Review excesses and obsoletes reports on a monthly and quarterly basis.
Daily Tracking: Track and register: inventory, scrap, shop supplies, cost, and sales on a daily basis.
Sales and Cost Reporting: Provide accurate and timely reporting of sales and material costs.
Work Order Management: Assists with work order corrections and variance analysis.
Management Issue Resolution: Researches and analyzes management questions and resolves issues.
Monthly Reporting: Prepares reports on monthly activity for distribution to management.
Inventory Location Management: Involved in the management of various inventory locations within the organization.
Account Reconciliation: Performs monthly account reconciliations.
Audit and Compliance Assistance: Assist on various audit and compliance engagements.
Cost Maintenance: Responsible for daily standard cost maintenance and TP quotation.
Sales Forecasting: Prepare monthly sales forecast and analysis report.
Inventory Count and Analysis: Conduct inventory physical count and various variance analysis (i.e. price variance, usage variance, burden variance) on a monthly basis.

11. Cost Accountant Additional Details

Cost Analysis: Analyzing actual manufacturing costs and preparing periodic reports comparing standard vs actual production costs.
Product Costing: Responsible for product costing and accuracy while making estimates of new and proposed product costs.
Service and Software Costing: Responsible for Service and Software plan costing.
Cost System Design: Designing, updating, and implementing production and labor costs on a continuous improvement basis.
Standard Cost Maintenance: Maintaining/updating standard costs while ensuring bill of materials are accurate and include appropriate overheads.
Inventory Oversight: Overseeing inventory and costing variance analysis, helping coordinate inventory counts (annually or more frequently as needed).
Inventory Control: Reconciling and maintaining control over finished goods inventory at all locations.
Gross Margin Analysis: Supporting the monthly preparation and review of the Gross Margin report by Unit sales.
Account Reconciliation: Performing monthly account reconciliations, completing complex reconciliations as well as acting as first-level review for certain account reconciliations while preparing accruals and reclassification entries.
Process Improvement: Developing efficient accounting and finance procedures and use of resources, while maintaining a high level of accuracy.
Audit Assistance: Assisting in annual audits by preparing working papers and assisting auditors with data collection.
System Improvement Support: Supporting initiatives to improve overall company systems and procedures.
Financial Controls Development: Developing, maintaining, monitoring, and implementing financial controls and procedures to ensure accurate reporting.

12. Cost Accountant Essential Functions

Inventory Cost Methodologies Leadership: Lead the development and execution of inventory cost accounting methodologies and reports.
Operations Communication: Communicate across all levels of operations and the finance organization, and help with special projects.
Month-End Close Execution: Perform month-end close tasks, ensure work orders are closed appropriately and prepare journal entries as necessary in Oracle ERP system.
Product Cost Review: Review and update product costs.
Labor Rate Analysis: Analyze and update direct labor rates and reconcile labor costs.
Inventory Variance Reporting: Develop inventory analysis reports and explain inventory variances.
Cost Accounting Issue Resolution: Research and resolve cost accounting issues as developed.
Cost Accounting Documentation: Document cost accounting activities to ensure consistent and efficient processes and procedures.
Compliance Verification: Recommend and verify compliance with inventory cost analysis methodologies.
Internal Controls Improvement Assistance: Assist in the improvement of internal controls related to inventory.
Inventory Reconciliation: Reconcile inventory accounts to the general ledger and prepare inventory roll forward schedules in Oracle.
Physical Inventory Reconciliation: Record and reconcile results of physical inventories and cycle counts.
External Communication: Respond to questions from internal departments and external sources such as auditors.
System Testing: Test system implementations and enhancements for accuracy, completeness and effectiveness to meet established standards

13. Cost Accountant Role Purpose

Cost Standard Development: Developing cost standards for food-related materials and labor.
Cost Variance Monitoring: Monitoring unit cost variances and creating depreciation schedules.
System Design and Implementation: Designing and implementing cost accounting systems and processes.
ERP System Implementation: Recommending and implementing ERP systems.
Manufacturing Analysis: Analyzing manufacturing operations, equipment, and utilization.
Production Cost Evaluation: Evaluating production costs and recommending changes.
Inventory Oversight: Overseeing inventory and cost-benefit analysis.
Strategic Finance Collaboration: Working closely with the VP of Finance to help guide strategic planning and manufacturing, and making recommendations to support organizational goals to maximize profitability.
Operational Management: Organizing and overseeing all cost accounting operational functions.
Production Cost Reporting: Managing cost of goods sold and production reporting.
Standard Cost Management: Conducting standard cost calculation, cost control, and analysis.
Inventory Management: Conducting physical inventory management such as annual PI, cycle count, E&O calculation.
Cost Rate Analysis: Analyzing plant cost run rates such as absorption, MUV, PPV, POV to support business decisions.
Continuous Learning: Constantly learning new things and sharing them with team members.

14. Cost Accountant General Responsibilities

Material Balance Management: Provide raw material balance within the facility including WIP and finished goods.
Materials Usage Analysis: Analyze materials usage to ensure all materials are accounted for.
Product Cost Determination: Determine costs for products for comparison to cost estimates.
Standard Procedures Assistance: Assist in establishing standard procedures.
Inventory Assistance: Assist in monthly and annual physical inventories.
Budget Preparation Assistance: Assist the Controller in the preparation of facility capital expenditures and operating expense budgets.
Financial Due Diligence: Maintain due diligence, analyze, and approve all facility utility bills, freight charges, etc.
Variance Investigation: Investigate and resolve abnormal variances.
Accounting Audits Performance: Perform regular audits of all accounting control functions of the facility.
Operational Reporting: Prepare reports for the Plant Controller and Corporate Accounting reflecting changes in operating/production costs, inventory record accuracy, material balance, etc.
Production Data Analysis: Analyze production data and report results of weekly production data.
Production Trend Reporting: Report/graph trends on production data.
Month-End Close Participation: Participate in the month-end close process.
Balance Sheet Reconciliation Maintenance: Maintain proper balance sheet reconciliations.

15. Cost Accountant Key Accountabilities

Cost Planning and Management: Planning, organizing, and directing all activities of manufacturing cost accounting functions and systems including purchasing, inventory, overhead, production, and labor.
Cost Estimation: Making estimates on new and proposed product costs for planning purposes.
Cost Reporting: Preparing regular reports for the management team by analyzing and comparing manufacturing costs.
Financial Analysis: Analyzing and compiling financial information in manufacturing operations for month-end reports.
Inventory Support: Supporting the inventory at year-end.
Audit Performance: Performing quarterly audits of production records to verify the accuracy of recorded quantities.
Manufacturing Operations Collaboration: Working very closely with Manufacturing Operations.
Variance Analysis: Computing and analyzing manufacturing variances and reviewing with manufacturing personnel, providing timely and meaningful cost accounting information and analysis for manufacturing.
Standard Cost Development: Assisting in the development of standard costs for assigned product lines and monitoring actual performance against these standards.
Cross-functional Collaboration: Working cross-functionally with business partners to prepare full profit and loss plans for assigned product lines and to develop cost estimates of new products.
Inventory Valuation: Ensuring inventories are properly valued in accordance with generally accepted accounting principles and assets are safely guarded.
Finance Reporting: Cost Accountant reports to VP of FinanceAccounting.
Inventory Monitoring: Supporting and monitoring the Inventory cycle counting program.
Policy Adherence: Responsible for following the policies and procedures, maintaining the finance processes, and supporting the overarching finance objectives.
Process Improvement Recommendations: Recommending changes to company processes and policies.