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Your Questions on Cost and Management Accounting, Answered by an Expert
Are you interested in mastering cost accounting skills to help you become a lead financial decision-maker for your business?
Hear from industry expert, and Head Tutor on the University of Cape Town Cost and Management Accounting online short course, Janine Daniels, as she answers four frequently asked questions and further expands on the importance of cost accounting.
1. What is cost and management accounting?
Cost management accounting is a form of accounting that aims to improve a company’s profitability by managing, controlling and eliminating expenses. Cost accounting helps businesses determine the costs of products, projects and processes, which shows the company where it’s earning and losing money and is an integral part of budget planning. Cost and management accounting provides data and analyses reports that can be used by managers to make decisions that will lead to long term profits and growth.
2. Why is cost and management accounting important?
Companies are always looking for ways to boost sales and increase profits. Revenue, cost and profit are all important factors in determining the success of a business. To maximise profits and sustain profitability, revenue, as well as cost, should be managed. Effective cost management will free up cost and capital funds, which then can be reinvested to grow the business or spent on other investment opportunities.
3. How to study cost and management accounting
When looking to study cost and management accounting, learn the basics. Obtain a strong foundation and understanding of the principles and techniques, and then practise, practise and practise. Be patient. If you do not get it the first or second time around, by the third or fourth exercise things will start looking up. Use the same structure and approach to answering questions, and make sure to read the required section of a question before you read the body. Answer a question using the same layout and structure you practised.
4. Cost and management accounting – what jobs can you get?
When you study cost and management accounting you will be able to be hired to work as a cost accountant or management accountant in any organisation. There will also be opportunities to work as a budget analyst, financial analyst, financial or stock controller or financial planner. A role as a fixed asset accountant will also be attainable for you, as well as a cash management accountant. Cost and management accounting is also very useful for entrepreneurs who are looking to keep a closer eye on their accounting systems.
Want to make yourself invaluable to your company?
Develop your skills in cost and management accounting.