Cost Accountant

Job Description of a Costing Manager 2023| Responsibilities| Duties

Functional Role of a Costing Manager is to manage Annual costing of a company. Duties of Treasury Manager include Budgeting forecasting, variance analysis, Marginal Costing, break even analysis, Profitability analysis, Audit, Compliance etc.

Do you want to know in detail what a Costing Manager does? What you should look for in a Costing Manager Resume? What are the points you should include in your Cost Accountant CV? Please read below.

Responsibilities of Costing Manager:

Cost Accountancy:

  • Preparing Cost sheet, MIS related to all the Cost, Internal Audit, Inventory management, Marginal Costing, Maximum & Minimum, re-order level, EOQ order level, Implementation of Reports in ERP
  • Preparing budget and controlling, monitoring expenses of new plant
  • Preparing KPI’s and analysis of KPI’s with concerned departments
  • Annual Budget for Material and variance analysis,
  • Work closely with the Plant Finance Manager to provide business partnering support to the plant operations team undertaking variance analysis reviews on cost centers, standards, co-coordinating with Engineers and department Head for Cost Reduction. 
  • Budgeting forecasting, Annually, Quarterly, Analyzing variance against plan
  • Calculation of raw Material Requirement as per Budget, Monthly analysis both in terms of Quantity and value of Production, Consumption, Yield, cost of raw material and cost of production and conversion, Sales and also showing variance compared to standard costing.
  • Purchase price analysis for Key Input materials, Material wastage analysis, Labor productivity analysis in the organization
  • Conducting break even analysis, Material wastage analysis, Labor productivity analysis in the organization.
  • Preparing and maintaining documents on machine utilization with break-up of idle machine, machine productivity vis a vis standard, utilization of power and fuel etc.
  • Expenses analysis, Variance analysis, Monitoring all the expenses Regularly,
  • Raw Material Procurement Planning, Raw material Consumption Analysis.
  • Preparing Sales strategy, Sales Report, Production Report, Ratio analysis Etc.
  • Calculation of Gross profit Margin, Net Profit, Break even analysis, Profitability analysis.
  • Cost center analysis, Raw Material procurement planning & Pricing etc.
  • Preparation of performance report of various department/ Cost center
  • Conducting break even analysis, Material wastage analysis, Labor productivity analysis in the organization.
  • Annual Budget for Material and variance analysis
Costing Manager
Costing Manager (
  • Responsible for maintaining standard cost of API’s / Product in the SAP based on BOM & Recipe.
  • Responsible for Batch wise Actual Costing of API’s / Product.
  • Variance Analysis – Material Variance (Price & Usage).
  • Analysis of impact on Product Cost of change in Raw Materials Rate, Manufacturing Process & Raw Materials mix etc.
  • Providing product costing to management for various commercial decisions making based on consumption norms.
  • Cost Comparison of API’s & Intermediate (Inhouse vs Outsource).
  • Making estimates of new and proposed product costs.
  • Analyze costs of key raw materials and other supplies and create cost-benefit analyses for changing vendors.
  • Analysis of Solvent Procurement, Consumption & its recovery.
  • Monthly Opex monitoring against budget and Analysis of GL & Cost Center wise expenses booking.
  • Inventory Valuation, Aging & Analysis.
  • Review the Non-Moving & Nery Expiry Stock of all materials to take decision for liquidation.
  • Monthly Inventory Valuation, Aging & Analysis.
  • Initiate to support cost saving activity with cross functional team (i.g. solvent recovery / optimum utilization of opex / product time cycle & yield imprudent etc).
  • Conducts quarterly Physical Stock Audit / Verification.
  • Preparation of Monthly Volumetric Reactor Occupancy.


  • Preparing Profitability / EBITDA
  • Product wise Actual Costing Analysis with remarks for the variations ( current vs last campaign )
  • Variance Analysis ( Material Variance : Price, Usage )
  • Analysis of Production Plan vs Actual
  • Calculation & Analysis of Revenue Contribution/Margin
  • Product wise Yield Analysis Report with cost impact
  • Batches Working


  • Preparing Opex Budget of API plants
  • Support to preparation of Capex Budget

Cost Audit:

  • Primary & Secondary distribution (Collection, Allocation & Apportionment of overheads) for determining Cost of products/activities.
  • Product wise Profitability Working, Preparation of product wise cost sheet.  
  • Raw Material / Packing Material consumption (RMPM) of API for cost audit purpose.

How to become a Costing Manager:

Educational Qualification requirement for a Costing Manager is Graduate or Bachelor degree from any of college/university in Commerce and must be a ICWA (Institute of Cost Accountants of India – ICMAI) or CMA (Cost Management Accountant) Certified.

Technical Skills Required for a Costing Manager:

  • Strategic Planning & Leadership
  • MIS Management
  • Analytical Forecasting acumen
  • Mathematical expertise
  • Handle large quantitative data

Software skills Required for Costing Manager:


MS-Word, MS-Excel, MS-Power Point

Soft skills Required for Costing Manager:

  • Excellent Verbal communication skills, both written and oral.
  • Strong communicative and interpersonal skills essential for managing people.
  • Self-motivated, hardworking. Always keen on constant improvement.
  • Goal Oriented mind set.

What is the Job Opportunity of Costing Manager in the industry?

Costing Managers are required and hired in manufacturing, infrastructure, heavy engineering Companies, Logistics, cost management consulting firms etc. So, there is always a huge demand of Costing Managers.

Salary of Costing Manager (in India):

Average Salary of Costing Manager in India ranges from 5 Lacs Rupees to 50 Lakhs Rupees per annum. depending upon the Experience, Expertise, Industry, Business volume etc.


There are medium demands of Costing Managers abroad.

Also Read:

Job Description of a Chartered Accountant (CA)

Job Description of an Accounting Manager

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