Cost & Management Accountancy

12/12/2014 Career








Introduction




A business organisation can grow well
if it has a strong accounts
department. Moreover, it is the
accounts department which can draw up
a good resource utilisation programme
and cost saving mechanism so that the
profit margin of the company can be
increased. Cost and management
accountancy in particular is one
subject which deals with this problem
and helps in evaluating and managing
costs. It finds its origin way back in
the II world war period when the need
to evaluate defense cost was felt.
These days, in fact, it has attained
greater significance, especially in
the corporate sector



Nature of Work



The role and importance of cost and
management accountants has increased
manifold on account of growing
competition in the corporate sector.
Broadly speaking, their job comprises
of closely analysing costs and
devising ways to reduce it as far as
possible.



Cost and management accounting helps
in planning, monitoring and
controlling the cost and price of a
product or a service. Nowadays with
multi-product ventures taking place,
it has become important to know and
understand the exact cost of
production of products and services at
different stages, to minimize the
expenditure incurred on them and to
ensure better utilization of money.
This is where the role of cost and
management accountant comes.



Cost and management accountants
evaluate the operating efficiency and
effectiveness of production and
service management by collecting,
compiling, organising, verifying,
comparing and analysing information
from different departments of the
organisation. In large organisations,
these information may be made
available on computer based systems
specially designed to systemize the
work. The process involves critical
monitoring of relevant costs and
overheads like material, labour,
capital costs etc., involved in making
a product or providing a service. They
analyse the sales trend to strike a
balance between the demand and supply,
to prevent over production. They also
monitor the performance, to spot and
report on problems and prevent them
from occurring in future. This
analysis helps in comparing the
financial performances, making
assessments and projections, providing
figures for future costing and pricing
policies and other managerial
decisions.



Personality



As cost and management accounting
deals with the cost and benefit
analysis of a product or service, it
demands analytical and attentive
mindset with an objective outlook.
Fair amount of awareness about global
economic contitions is important. The
CMAs often deal with making future
projections and forecasts regarding
the prices, costs etc. which makes it
important to have good judgemental
qualities. The job also involves
interacting and working with a number
of people and to coordinate with them
requires, good communication skills
and team spirit.



Professional Course



Cost and management accountancy can be
pursued after 10+2. The course
comprises of three stages:-
Foundation, Intermediate and Final.
These stages are further discussed
seperately in the following segment.




FOUNDATION: Candidates who have passed
senior secondary under 10+2 scheme in
any discipline shall pass a Foundation
Course Examination to become eligible
as a student for Intermediate
Examination. The Foundation Course has
the following subjects.



Business Fundementals and Economics


Management and Organisation

Basic Mathematics and Statistics

Commercial Laws



INTERMEDIATE: Candidates who are 17
years of age and have completed
graduation in any discipline or those
who have cleared the Foundation
Examination are eligible for
registration for the Intermediate
Examination. It is obligatory for
registered students to undergo either
postal or oral tuition imparted by the
Institute before appearing for the
Intermediate and Final Examinations.
The following are the subjects in the
Intermediate Examination.



GROUP I:

Financial Acounting

Cost Accounting

Corporate Laws and Secretarial
Practice

Direct Taxation



GROUP II

Cost and Management Accounting

Auditing

Indirect Taxation

Quantitative Methods



FINAL: After clearing the Intermediate
Examination, students are eligible to
appear for the Final Examination. The
subjects in the Final Examination are




GROUP I

Advanced Financial Accounting

Information Technology and Computer
Applications

Operations Management and Control

Project Management and control



GROUP II

Advanced Management Accounting -
Techniques and Applications

Advanced Financial Management

Advanced Management Accounting -
Strategic management

Cost Audit



Institution



The Institute of Cost and Works
Accountants of India was given
statutory recognition by the central
government in the year 1959. The
Institute has 4 Regional Councils at
Mumbai, Calcutta, Chennai and New
Delhi. It has over a period of time
established a chain of chapters
throughout the country and abroad, in
all major cities and towns to provide
assistance to the students and to
perform other functions.



Specialization



After successfully clearing all the
papers of both Intermediate and Final
Examinations, students can apply for
the Associateship of the Institute.
Students having practical experience
of 3 years in fields of financial/cost
accounting and commercial aspect of an
industry can apply for the
Associateship.



Career Prospects



A qualified Cost Accountant leaves for
himself, plenty of career options. The
recognition granted by central and
state governments has added to their
career prospects. The importance of
the profession in economic development
of the country has led to their
involvement in advising the government
in cost and pricing policies and also
in framing of tax and fiscal policies.
They are treated at par with other
class - I services. In organisations
like Railways, Indian Army,
Nationalised Banks services of Cost
Accountants are often required for
costing, budgeting, auditing purposes.
They can also pursue teaching in
various universities as Professors,
Readers, Lecturers.



Apart from the opportunities available
in the government sector, Cost
Accountants can also look forward to
the corporate world. They can work as
executers, administrators, appraisers,
valuers, secretarial and tax
consultants, advisors etc. With
advancement in career and experience,
they can even rise to top positions
like Financial Auditor, Financial
Advisor, Finance Director etc.



It is not a bad idea for Cost
Accountants to build up their own
practice. Cost Accountants can set up
their own practice either individually
or in partnership, after obtaining
license from the Institute. The
clients in a private practice may vary
depending upon the size of practice.
It may range from large public and
private companies to small partnership
and proprietory concerns.



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