What is Cost Management Accounting
The Cost Management Accounting is one of the most valuable and beneficial programmes in the business and the finance sector. Someone who aims to make a career in the management accounting field should go for the Cost Management Accounting programme as it is one of the best options available when it comes to the courses in the commerce field.
It is one of the trendiest and in-demand programs in the commerce field. Not only students from the commerce background are opting for this course, but also students from other streams who want to make a career in the commerce field are going for this program. As a result, Cost Management Accounting is one of the most popular courses in the commerce field.
ICAI, Institute of Cost Accountants of India is the head institution that provides the credentials of this program. The course focuses on the accounting, financial, and management aspects that are required in businesses all over the world. Cost Management Accounting programmes focus on a wide range of subject areas such as financial analysis, audit, tax, laws & ethics, management strategies, cost, accounting, and many other topics. There are a total of 20 topics/subjects which are taught in this course. The subjects are segregated into three different levels. The entire course comprises of three different levels:
Level 1 – Cost Management Accounting Foundation
Level 2 – Cost Management Accounting Intermediate
Level 3 – Cost Management Accounting Final
Students need to clear all three levels to complete this course and get certified as a qualified Cost Management Accounting. The course is generally of 3 – 4 years, which may also vary depending upon various factors such as the capacity to learn, interest, dedication, and hard work. If you are interested in this program or willing to make a career in the Accounting field, then the Cost Management Accounting course is indeed a great choice. But, to opt for this course, you need to be aware of various factors related to the course, such as eligibility criteria, scope, career prospects, syllabus, and salary. So, in this article, you will get to know every detail about Cost and Management Accounting.
Eligibility Criteria (UG & PG) of Cost Management Accounting
Eligibility criteria for Foundation level
The candidate needs to have completed their class 10 or any equivalent educational qualification from a recognised board or institution.
The candidate should have completed his senior secondary (10+2) education qualification or any other equivalent examination from a recognised board or institution.
Eligibility criteria for Intermediate level
The candidate should have completed his senior secondary (10+2) education qualification or any other equivalent examination from a recognised board or institution.
The candidate should have qualified in the foundation level exam of the ICAI.
Eligibility criteria for Final level
The candidate should have completed his senior secondary (10+2) education qualification or any other equivalent examination from a recognised board or institution.
The candidate should have qualified in the intermediate level exam of the ICAI.
Entrance Exams for Cost Management Accounting
There is no such entrance exam to become eligible for this course. The only criterion is that students should have passed Class 10 to register for the 1st level of the course. Students need to have passed their Class 12 to appear for the 1st level exam of the course. There are three levels to complete the entire course and, therefore, students keep moving to the next level after completing the previous level. The beginner level or the first level of the course is the Cost Management Accounting Foundation.
Scope of Cost Management Accounting in India and Abroad
As per a survey, the accounting sector is one of the most preferred sectors by business/commerce graduates. The survey was conducted by the Times of India. There is a wide range of opportunities in the accounting and the auditing industry, and therefore, students from commerce background should go for making a career in this field. Pursuing educational qualifications in the accounting field will give in-depth knowledge about the business sector and will open up great career prospects.
Cost Management Accounting qualified professionals have the skills to handle work for big companies. As every company requires professionals for their accounting purposes, Cost Management Accounting is not only a stable career but also a career with good earnings. Many companies in India recruit professionals from this field every year. Some of the top scorers get directly selected and get a job in the big companies. It also gives the required edge to qualification and skills in this sector so that one can also earn by working both inside and outside the country. It opens up opportunities and makes professionals eligible for big organisations and MNCs all around the globe.
Course Fees Cost Management Accounting
Minimum Fees | Maximum Fees | |||
---|---|---|---|---|
Private | Government | Private | Government | |
UG | ||||
PG | ||||
DIPLOMA |
Course Subjects
Below is the list of the subjects/syllabus taught at different levels in the Cost Management Accounting course:
Cost Management Accounting Foundation –
Fundamentals of Accounting
Fundamentals of Laws and Ethics
Fundamentals of Economics and Management
Fundamentals of Business Mathematics & Statistic
Cost Management Accounting Intermediate –
Direct Taxation
Indirect Taxation
Financial Accounting
Company Accounts & Audit
Laws, Ethics and Governance
Cost and Management Accounting
Cost accounting and financial management
Operation Management Information System
Cost Management Accounting Final –
Cost and Management Audit
Corporate Financial Reporting
Tax Management and Practice
Corporate Laws and Compliance
Advanced Financial Management
Strategic Performance Management
Financial Analysis & Business Valuation
Business Strategy & Strategic Cost Management
Careers in Cost Management Accounting
Cost Management Accounting qualified professionals are also eligible for contributing or making big decisions in various top-level positions in an organisation. Cost Management Accounting certification provides individuals with the power to deal with critical business scenarios and work among business leaders.
The career opportunities in this field are stable, along with high earnings.
Upcoming trends
The topics, accounting practices, and the subjects in the field of Cost Management Accounting have evolved since the 1980s. The trends and topics keep on changing, and one needs to beware of them. So the future trends in the field of Management Accounting are:
Change in costing principles by converting them into practical
Management practices should support IT and shared services
It should integrate with various systems and machines
It must help the sales and marketing functions
Accounting professionals should be mastered with updated tools, analytics, and financial forecasts along with existing methods.
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Job Profiles and Top Recruiters
Job Profiles for Cost Management Accounting Professionals
Cost Management Accounting also provides recognition to individuals by providing great career opportunities along with various job profiles such as Finance Manager, Cost Accountant, Finance Controller, Chief Financial Officer, and more.
Below is a table showing different job profiles along with job description that qualified professionals can expect after completing Cost Management Accounting are:
Job Roles | Description |
Financial Analyst | The job of a financial analyst is to perform analysis, look after financial operations, manage finance, and ensure the best use of resources of the business. The aim is to help the business achieve all its objectives. |
Financial Controller | The job of the financial controller is high-level, and the jobs include finding opportunities, avoiding risks, and developing strategies related to finance for the overall growth of the business. |
Finance Manager | The finance manager is responsible for helping in making the budget, managing all the financial resources, allocate them accordingly, and work with the executive management team. The job of a finance manager to help businesses make the best decisions. |
Finance Director | The job of a finance director is to go through, provide reviews, and direct the use of financial resources in the business by keeping the budget into consideration. |
Chief Financial Officer (CFO) | The job of a CFO is to overall analysing and looking after the company’s financial planning, inflow & outflow of cash, weaknesses, strengths of the company. |
Top Recruiters of Cost Management Accounting Professionals
Nestle
Master Card
TATA
IBM
Standard Chartered
Walmart
EY
Amazon
Walter Bushnell
CITI
Quin Street
Average Salary
Below is a table showing the average salary per annum offered in different job roles after completing a qualification in the Cost Management Accounting field:
Job Roles | Average Annual Salary |
Financial Analyst | Rs. 5 – 6 lakhs p.a. (Approx.) |
Financial Controller | Rs. 7 – 20 lakhs p.a. (Approx.) |
Financial Manager | Rs. 6 – 10 lakhs p.a. (Approx.) |
Financial Director | Rs. 20 – 30 lakhs p.a. (Approx.) |
Chief Financial Officer (CFO) | Rs. 20 – 40 lakhs p.a. (Approx.) |
Required Skillset for Cost Management Accounting
Below is the list of some of the most important skills that students willing to pursue Cost Management Accounting should have:
Strong accounting knowledge – As the Cost Management Accounting mainly deals with finding solutions for cost-related problems, students should have good accounting knowledge. Students should have a strong base of accounts to be able to cope with various accounts related subjects in this course. Good knowledge of accounts and other business-related subjects will help students during the course as well as after completing the course.
Excellent analytical skills – Analytical skills also play a major role in the Cost Management Accounting course. Analytical skills such as successful evaluation of likely business ventures, investments, and contracts are required in this program. Work like decision making, providing valuable improvements in the budget, avoid any mismatching, and managing cost properly require analytical skills.
Tech-savviness and technical proficiencies – Students who are familiar with various technologies and other business tools have a great advantage in this program. There is various work in this field which require some knowledge about tools to present or process data. Tools like Excel and PowerPoint are some examples of tools frequently used in this field.
Communication collaboration and presentation skills – Depending upon various factors, Cost Management Accounting professions need to deal with people of various nature, job, background, and authority.
English Language – Students also need to have a good understanding of English to understand various problems and solve them in this field.
Therefore, professionals in the Cost Management Accounting field are required to have good communication, negotiation, and interpersonal skills. Presence of all these skills will open up great career prospects and offer great opportunities to students in this field. Other skills, such as strategic-skills, problem-solving skills, forecasting, costing, management, and other skills, are also important in this field.
Course Curriculum for Cost Management Accounting
The curriculum of the Cost Management Accounting course provides individuals with skills required in the accounting and business industry. It also makes an individual eligible for working in the business environment and companies all over the world. The course curriculum provides students with all the required training and skills to gain expertise in the fields such as finance, account, and management. The entire Cost Management Accounting course is divided into three levels, and students are required to qualify in all three levels with a good score. Candidates after qualifying in the examinations get to excel in various important skills required in the accounting and business industry.
Candidates can gain many valuable and beneficial skills in completing the qualification of the curse. Candidates get in-depth knowledge and also gain expertise in skills through the course curriculum such as expertise in Financial Accounting, Strategic Management, External Financial Reporting, Performance Management, Cost Management, Planning and Budgeting, Risk Management, Investment Decision, and a lot more.
Popular Cost Management Accounting Colleges in India VIEW ALL
Frequently Asked Questions (FAQs)
Question: Should students pursue BCom. while doing Cost Management Accounting?
Answer :
Yes, as most of the basic syllabus of B.Com will be covered while doing the course and the other things are not difficult to manage while pursuing this course. That’s why it is useless to waste time when one can complete their Graduation along with it.
Question: Is the Cost Management Accounting course difficult?
Answer :
Yes, just like every other course in the commerce field with accounts as the specialisation, it is a difficult course requiring a lot of dedication. Students need to be hard-working and passionate enough to complete all three levels of the course. They should not have the habit of quitting things as it may create a barrier in this field. It is not something impossible, and there are other courses in this field that are even tougher and this a good option if compared with great prospects and rewards.
Question: What are the pass marks for the exam?
Answer :
Students need to score at least 40% marks in each subject and 50% in total of the non-exempted papers of that group.
Question: What is the working hour of professionals in this field?
Answer :
The working hours may vary according to different job roles, situations, countries, or work. But, generally, data science professionals have to work for 6 - 8 hours per day and sometimes, even more, depending upon the urgency and need of the situation.
Question: Is pursuing the course of Cost Management Accounting a good career option?
Answer :
Yes, pursuing the course of Cost Management Accounting is a good career option, especially if you are from a commerce field and willing to pursue a career in this field. Students can pursue this course freely as exams are conducted twice a year and can take their time to prepare and then attempt the exams. It also provides high earning job profiles.