Role of Cost Accountants

Cost Accountants are Accountants who are basically concerned with management of business, trade & industries through Accounting with emphasis on Cost Management .Competition is the hallmark of liberalisation and globalisation .The expertise of the Cost and Management Accountants can be used in furtherance of the objectives of globalisation. Services of the Cost and Management Accountants can be effectively used to put the economy on the wheels of progress besides playing an effective role in Total Cost Management and implementation of Enterprise Resource Management. In respect of unconventional areas of audit which are still unexplored, e.g. energy audit, management audit, environment audit etc. Cost and Management Accountants can accept the challenges and produce meaningful results.

Statutory Fields
As on date 47 selected industries have been covered under statutory maintenance of cost accounting records under section 209 (i) (d) of the Companies Act 1956.Further, under section 233-B of the same Act, audit of the cost accounting records by a qualified cost accountant, has been prescribed. The following are the industries presently covered under cost accounting records and cost audit in Cement, Cycle, Caustic Soda, Tyres and Tubes, Room Air conditioners, Refrigerators, Automobiles Batteries, Electric Lamps, Electric Fans, Electric Motors, Motor Vehicles, Tractors, Aluminium, Vanaspati, Bulk Drugs, Sugar, Infant Milk Foods, Industrial Alcohol, Paper, Rayon Dyes, Soda Ash, Polyester, Nylon, Textiles, Dry Cells Batteries, Sulphuric Acid, Steel Tubes and Pipes, Chemicals, Power Driven Pump, Mini Steel Plants, Insecticides, Fertilisers, Soaps & Detergents, Cosmetics & Toiletries, Shaving Systems, Footwear, Industrial Gases, Electricity, Telecommunication, Petroleum products

Following are the major industries for which the cost accounting record rules are yet to be framed:- Fuels like Coal, fuel gases Transportation-Aircraft, Ship, Railway locomotives Industrial Machinery, Agricultural/Earth-moving machinery Medical and Surgical Appliances Food Processing Industries Glass Ceramics Defence Industries-Arms and Ammunition

Following industrial/service sectors have attained strategic importance to the economy and public at large, particularly after the opening of the economy for private/foreign companies. The Cost Accounting Records Rules for these sectors are being prepared in a phased manner:- 
Banking , Insurance , Media/Broadcasting , Health Services , Education , Hotel (Hospitality Industry) ,Tourism , Airlines

General and Non-Statutory Fields
Installation of Costing Systems, Techno-Economic Studies, Pricing, Optimum Utilisation of Capacity and Resources, Value analysis/Engineering, Cost Reduction, Efficiency and Profitability improvement, Profit Planning, Introduction of Standard Costing system, Services to Banks, Financial Institutions, Insurance Companies in conducting Project Appraisal, Feasibility Studies, 
Project Monitoring, Project Management and Control, 

Software field 
Opportunities in Software Companies and also in Practice. 

Cost Accountant is having in depth knowledge of movement of material, manufacturing process, dispatch of finished goods etc. They are well aware of the relationship of each transaction with other departments / transactions. They know the control process and remedies to avoid wrong accounting, wrong reporting, compliance with legal provisions etc. Hence,they are in an advantageous position to Map the system. There is growing demand for Cost Accountants in this field.