cost accounting certification

cost accounting certification

The Importance of Cost Accounting Certification in the Modern Business Environment

1. Introduction to Cost Accounting Certification

In this first part of the paper, we delve into the role of cost accountants in the modern business environment, taking a look at their functions in cost management, internal and external financial reporting, and planning and control. We deduce the necessary skills attributed to cost accountants from the performance of these diverse functions. Finally, through the use of qualitative data, we report on perceptions of professionals in industry and academia of cost accountants’ present state of readiness and the attributes necessary for success in their role.

In this paper, we explore the specific skills that cost accountants must possess to perform their duties, and through a short survey of recruiters and accounting professionals, highlight the need for this role to be officially recognized through a specific cost accounting certification.

Cost accounting is an important aspect of any business undertaking. Business managers, owners, and other stakeholders rely heavily on cost accounting to provide them with critical information on which important business decisions are made. It is therefore imperative that accountants and other professional managers who are responsible for this important function must be well trained and knowledgeable so that they can continue to function in their assigned role as efficient partners of the business enterprise.

2. Benefits of Obtaining a Cost Accounting Certification

There are many costs associated with applying for and maintaining a certification in the field of accounting or cost accounting, which is why individuals involved in the industry typically want to see what the direct benefits of obtaining such a label from an accredited institution really are. Cost accountants and other professionals obtaining a cost accounting certification on their road to certification should consider the following benefits of obtaining it in their area of practice. These five points illustrate fairly strong reasons to becoming certified in cost accounting, but they may not all apply directly to every profile of individual working in the industry. There are some pros and cons to the task completion and perks associated with holding a title, which must be considered before investing significant resources into the certification process.

Many people struggle with the concept of becoming certified in cost accounting within the business world. Does a cost accountant really need this certification to effectively perform his or her job? While cost accountants may argue that there are additional education, experience, and competency requirements needed in order to fully understand and interpret cost accounting data, the acquisition of a specific license or certification may not be necessary to illustrate this knowledge and skill level. It is not uncommon to see a Certified Public Accountant (CPA) or Certified Management Accountant (CMA) perform inside a corporate organization with a minimal level of training and history in the field of cost accounting.

3. Key Skills and Knowledge Covered in Cost Accounting Certification Programs

Certified Cost Accountant (CCA) classes offered by schools of all types teach the principles and practices of accounting and all direct accounting functions, such as account analysis, reporting, and budget preparation, control, and administration. Streams of both the manufacturing and non-manufacturing environments are addressed. Classes instruct in the principles and practices of accrual accounting, including analysis of accounting structure, determining cost variance, working within Generally Accepted Accounting Principles (GAAP), and budgeting.

Key Skills and Knowledge Covered in Cost Accounting Certification Programs

Cost accounting certifications are a great way of validating the knowledge and expertise of workers in the field. Additionally, because lots of the skills used on the job are the same or are related to those taught in the classroom of schools offering cost accounting certification, many people looking to increase their skills can benefit from the information offered in these classes. In this, the second of a five-part series of articles about the advantages of pursuing cost accounting certification classes and obtaining a certification, we will look at some of the key skills and knowledge that these classes provide.

4. Different Types of Cost Accounting Certifications Available

Certified Cost Accountant: A professional in cost accounting pursues the credential of AICPA Certified Cost Accountant (CCA) through an extensive curriculum. The Certified Cost Accountant completion should identify the most complex elements of cost accounting regulation, the most effective forecasts for the economy, and the most advanced potential for an organization. Individuals with a higher education degree and related work experience in accounting are considered for the Certified Cost Accounting curriculum. The business community’s demand for a Certified Cost Accountant has been increasing as companies expand into dynamic markets that require a higher-level Controller or financial manager knowledge base. The Certified Cost Accountant certification is regulated by the Academy of Financial Controllers.

Enrolled Actuary Certification: All Enrollment Recipients receive a detailed tax certification, with the ability to encourage and develop cost accounting principles and procedures. Although the Enrolled Actuary participation credential is not as comprehensive as the Certified Cost Accountant certification, this participation is commonly pursued by business professionals who already perform cost accounting independently. The Enrolled Actuary certification is academically and professionally valued and serves a very important function in the financial community.

Certified Public Accountant: Certified Public Accountants have the same certification in accounting and taxation, as well as specialization in many of the most common financial elements of cost accounting. In many cases, a degree in Certified Public Accounting is helpful for those pursuing a Cost Accounting certification to help understand the more complex economic symptoms and important facets of cost accounting as they relate to the financial fitness of an organization. Although not necessary for the ability to practice cost accounting methodologies, Certified Public Accountants often seek Cost Accounting certifications to serve their business market more thoroughly.

There are several cost accounting certifications available in the business community, ranging from simple independence certifications to the complex Certified Cost Accountant certification. Some of the most common certifications are as follows:

5. Steps to Achieve Cost Accounting Certification

5. Pass the CMA Examination. The examination is offered in four test windows each year, consisting of two months beginning with: – January & February – May & June – September & October – November & December

4. Study. The examination covers the following areas critical to the successful completion of the CMA: – Planning, Budgeting, and Forecasting – Internal Controls – Performance Management – Professional Ethics Each of these topics is assigned a weight. The most weight or percentage, range from 30 percent to 40 percent, concerns Budgeting and Forecasting. The second most important realm of financial management is Planning, with a 25 percent weight. The other topics come behind with less weight. It is recommended that you stack up on study materials and take a web-based review course. There are various services available.

3. Complete your CMA Program Entrance Application. – This application can be accessed through direct links found at the IMA website, and must be completed by you. They serve as the entry point to the CMA program. After the applicant is qualified, this application must be mailed or faxed to the address/telephone numbers provided on this form.

2. Submit the CMA Certification Program Entrance Fee. – The examination fee which is currently $300 will also come into play when registering for the examination. Note: Fees are non-refundable and non-transferable.

1. Verify that you meet the eligibility requirements. In order to sit for the Cost Accounting Certification Examination, applicants must meet the following eligibility requirements: – An undergraduate degree from a college or university teaching the topic according to Institute of Management Accountant (IMA) guidelines – Active IMA membership – Two continuous years of professional experience in the field