Q1.What is the job
of Cost accountant ?
Q2.What is the
nature of job of a cost accountant ?
Q3.How are the ICWAI examinations held ?
Q4.What are the
qualities essential for cost accountancy ?
Q5.What does the
Q6.What is the List
of Indian Cost and Works Accountant Institutes ?
is the job of Cost accountant ?
A1. It is one of the most
essential management services. It is a fairly new branch, a profession
ushered in during the last century. With increase in competition and
consequent economic pressures, cost and management accountancy has been
finely interwoven into the main fabric of management. Collection,
assimilation, collation and analysis of financial information from all areas
of an organisation are the functions of a cost accountant. There is no
denying the fact that an organisation’s success or failure is dependent on
the quality of information made available to the management. This is where a
cost accountant’s productivity is of vital importance to the company. It is
his primary job to ensure that managerial decisions are well within the cost
prescriptions. The cost accountant is expected to give a prognosis for
projects to be undertaken based on past and present financial performances.
In order to do this a cost accountant needs to take into account factors
like cost of raw materials, labour, transport, overheads and the like.
Knowledge of these costs will help the cost accountant prepare budgets for
the operation that is planned.
is the nature of job of a cost accountant ?
A2. A cost accountant
specialises in navigating managerial decisions, stabilising budgets and
standards, assessing operational efficiency and the effectiveness of
production and service management, identifying accountability for profit
variance and so on. His responsibilities include: designing and implementing
effective management information and control systems, planning costing
systems and methods, inventory control incorporating mathematical models,
investment analysis, project management, internal audit, cost audit,
diagnosis in the case of sick industries, fund management, pricing planning,
interpreting information and data related to business activities and
translating them in such a way as to guide the core management into taking
the right decisions. Criteria The academic requirement is to pass the
examination conducted by the Institute of Cost and Works Accountants of
are the ICWAI examinations held ?
A3.The ICWAI examinations
are held in three stages – preliminary, intermediate and final. A candidate
may appear for the preliminary examination after passing the plus two
(twelfth standard) examinations. The students are tested in English,
elementary mathematics and general knowledge. The preliminary is waived in
the case of gazetted officers, post graduates, qualified engineers holding a
degree and graduates from other streams with fifty per cent marks. They are
generally allowed to register with the institute for the intermediate
For the intermediate exam,
there are four papers – financial accounts, cost accounts, corporate laws
and secretarial practice and direct taxation. The syllabus covered in the
entire course includes book keeping and accountancy, production,
productivity, cost effectiveness, cost accountancy, business mathematics and
statistics, business and economic laws, principles of management, auditing,
tax laws and tax planning, quantitative techniques and methods of cost and
management accountancy. The institute has made it mandatory for registered
candidates to undergo training, or tuition, either directly or through
correspondence, before appearing for the examinations. The duration of the
course through correspondence is eighteen months.
What are the qualities essential for cost accountancy ?
A4.As for personal
traits, the first requirement is that one needs to be a native numerate. Of
course, academic abilities too top the list alongside. Other equally
important requirements are an ability to communicate (both written and
spoken) concisely, a keen business sense and the ability to negotiate. The
job calls for a high sense of motivation, concentration and
determination.Regional councils and other institutes recognised by the
Directorate of Studies of the ICWAI conduct these classes. Examinations are
held twice in the year. The Cost and Work Accountancy course may be
completed over a period of two or three years. It is generally considered to
be easier than the chartered accountancy course.
does the future hold?
A5.Once a candidate has
passed the examination, there are several options ahead of him. He could
either serve in an industry or opt for government service. There is plenty
of scope in the banking and insurance sectors. The government has made it
mandatory for thirty-eight classes of companies to employ a cost accountant.
This very fact throws up tremendous opportunities for one. There is always
the option of practising as a consultant. A third option is to impart
teaching at institutes or at universities. Higher academic pursuit for a
doctorate is also possible. The ICWAI programme has been recognised by some
universities for admission to Ph. D courses in commerce. If one can manage
an additional CA (Chartered Accountancy) or an MBA (management) degree, the
scope for an individual is indeed vast. The returns: For a cost accountant,
there is no fixed pay scale. It depends entirely on the organisation that he
is employed in. Generally speaking, he could begin around Rs. 4,000 a month.
For those with an additional degree such as CA or MBA, the starting salary
is likely to be on par with senior executives in the organisation, probably
in the Rs. 7,000-12,000 bracket.
is the List of Indian Cost and Works Accountant Institutes ?
A6.Head Office – The
Institute Of Cost and Works Accounts of India, 12, Sudder Street,
Regional offices: Northern
India Regional Council of the ICWAI, 3, Industrial Area, Lodhi Road, New
Delhi-110 003. Western India Regional Council of the ICWAI, Rohit Chambers,
4th Floor, Goga Street, Mumbai-400 007. Southern India Regional Council of
the ICWAI, 65, Montieth Lane, Egmore, Chennai-600 008. Eastern India
Regional Council of the ICWAI, 84, Harish Mukherjee Road, Calcutta-700 005.