Cost and Management Accountancy

As a cost and management accountant, you will be responsible for minimising the expenditure and optimum utilization of resources in the firm by using different methods like cost analysis.

What does a CMA do?

A cost and management accountant will be involved in various services like costing, pricing of good/services, and preparation and verification of cost accounting and related statements. They are expected to evaluate the efficiency and effectiveness of production and services in different departments of the company.

What does a typical day at work involve?

  • Checked Analyzing costs of raw materials and other supplies and creating cost-benefit analyses for different vendors
  • Checked Budgeting, cost management, and asset management within a company or organization
  • Checked Collaborating as part of an executive team to create a financial plan for the organization
  • Checked Working with corporate executives or heads of companies to strategically develop plans and policies of the company, and preparing financial reports for tax authorities, creditors, stakeholders and regulatory agencies
  • Checked Preparing monthly journal entries as well as monthly & quarterly accounting reports for submission to the management
  • Checked Conducting inventory reserve analysis and generating reports for the management
  • Checked Assisting the staff accountant with development of new policies or procedures to increase cash flow
  • Checked Reviewing rates of depreciation, labor and overhead and suggesting policy changes to improve numbers
  • Checked Establishing standard costs and updating them as appropriate

What job roles can a CMA take up?

Financial managers ensure the financial health of an organization through the proper management of finance and investment.
Financial analysts critically look at the performance of an organization’s financial matters including stocks, investments, bonds etc. and assist individuals and companies in their decision making.
Financial risk manager look out for the vulnerabilities in the financial transactions of an organization and take actions to mitigate these problems.
Cost accountants analyse the actual cost associated with a product or a service and scrutinize all expenses within the supply chain.
Relationship managers try to improve the firm’s relationship with all stakeholders including customers, government, public, and the media.

How to become a CMA?

Step 1
Take any stream at the 10+2 level.

Candidates who have chosen any stream at the plus two level would be eligible for higher studies in accountancy related courses, but opting for a commerce stream would be recommended as it will help build a stronger base in the fundamentals of the field.


Note:Commerce+ Maths

For candidates who wish to pursue any finance related subject, studying maths the the plus two level will be an added advantage.

Step 2
Take ICAI foundation course

After plus two, you can pursue the ICAI (Institute of Cost Accountants of India) foundation course to start your career in this field. Passing the plus two exam would make you eligible for appearing in the ICAI foundation exam.


Note:

If you have any graduate degree, you are exempted from CMA foundation exam. You can directly give the ICAI intermediate exam.


Note:CMA(US)

CMA(US) is offered by the institute of management accountants, USA, which gives global recognition in the field of CMA. The examinations for CMA (US) are pretty flexible and it could be completed within one year if the student has an in-depth understanding of the subjects.

Step 3
Take ICAI intermediate.

After clearing the foundation exam, you can appear in the ICAI intermediate exams. Candidates who have completed their graduation can give the intermediate exam directly without passing ICAI foundation.

Step 4
Take ICAI Final exam

Passing ICAI intermediate or professional education exam, and completing articled training are the minimum requirements for appearing in the ICAI final exam.

Colleges

Name State District Type Website Course

Skills Required

Numerical skills

Numerical skills and knowledge in financial dealings are necessary for a career in CMA as it would be required to understand the complex numerical information and data that has to be handled as part of the job.

Commercial Awareness

It is necessary to have general business skills, and knowledge and understanding of how companies and industries work as a whole. A cost management accountant must be able to recognize how businesses run and how it is affected by various external factors.

Analytical-thinking ability

A cost and management accountant must have good analytical thinking capacity as they need to use logic to solve problems. This specific skill will help cost management accountants to formulate plans and review the plans proposed by other departments.

Decision making ability

Cost and management accountants will be required to take quick decisions in many critical situations.

Detail Oriented

A cost and management accountant should be detail oriented and should have an organized approach towards their job.

Stress tolerance

It's important for a cost management accountant to have an average / above average level of stress tolerance.

Industries

  • Checked Public Sector
  • Checked Automobile
  • Checked Manufacturing sector
  • Checked Health care sector
  • Checked E-commerce
  • Checked IT sector

Top companies

  • Checked Deloitte
  • Checked Pricewaterhousecoopers (PWC)
  • Checked Ernst & young
  • Checked KPMG