Cost analyst
Encyclopedia
In business
, a cost analyst is a person who analyzes a company
's cost
s, or the use of available resources, and reports such analysis to management
for decision-making and control.
Additionally, cost analysts may determine the opportunity cost
s of a specific decision by management.
methods, may gain certification as a Certified Management Accountant
(CMA) by taking and passing a seris of exams from the Institute of Management Accountants
(IMA).
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
, a cost analyst is a person who analyzes a company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
's cost
Cost
In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...
s, or the use of available resources, and reports such analysis to management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
for decision-making and control.
Tasks
Due to a more competitive environment and increasing expenses, companies look to analyze their costs in order to improve their operations and efficiency. Cost analysts may determine certain information useful for such purposes, including:- Cost-benefit analysisCost-benefit analysisCost–benefit analysis , sometimes called benefit–cost analysis , is a systematic process for calculating and comparing benefits and costs of a project for two purposes: to determine if it is a sound investment , to see how it compares with alternate projects...
- Cost for each production unit
- Methods for allocating complex processes to units to create exact unit costs
- Matching costs to customers to evaluate customer profitability
- Process improvement methods
- Performance evaluation
- Strategic and Tactical planning for new products or services
Additionally, cost analysts may determine the opportunity cost
Opportunity cost
Opportunity cost is the cost of any activity measured in terms of the value of the best alternative that is not chosen . It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices. The opportunity cost is also the...
s of a specific decision by management.
Industry requirements
The cost analysts require a strong background in cost accountingCost accounting
Cost accounting information is designed for managers. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations...
methods, may gain certification as a Certified Management Accountant
Certified Management Accountant
The title Certified Management Accountant is used by various professional bodies around the world to designate their different professional certifications....
(CMA) by taking and passing a seris of exams from the Institute of Management Accountants
Institute of Management Accountants
Institute of Management Accountants is a professional organization headquartered in Montvale, New Jersey more than 60,000 professionals worldwide...
(IMA).