Cost and Works Accountancy
The cost and work accountant helps the functional management to run the profitable business. The cost and works accountants evaluates the operational efficiency and efficacy of the production and service wings ,and ensures the profitability of company through streamlining costs and negotiating product pricing .The cost and work accountant plays a complementary role to the chartered accountant.
The cost and work accountant plays a significant role
in guiding managerial decisions .He ensures that the management decisions are based on the properly sound information. He assigns value in terms of money to the products, services or work completed by the firm and analyses the profit potential of the various products of the company. Cost accounting is also useful in fixing wages, incentives etc .in proportion to the companies productivity.
The cost and work accountant has a vital role to play in the large companies which sell multiple product or services from multiple locations and where performance based perks are offered to bring the best out of the workers. In the modern context where the emphasis is on activity based costing, the work of the cost accountant becomes more clear cut and precise. Those specialise in this field end up as accountants, costing engineers ,finance managers in large firms.
The institute of costs and works accountants of India (ICWA) exclusively administers this programme. After passing the +2 equivalent examination ,the aspirant can register for the foundation course. The course consist of basic knowledge in business fundamentals and economics, management and organisation, basic maths and statistics and commercial laws.
after passing the foundation course the candidate can proceed to the next level which comprises the intermediate and final course. Admission to the intermediate course is also available to those who have not pass the foundation level if they are graduate/equivalent or passed the final examination of ICAI/icsi/equivalent and are 18 years of age. Register student must complete the inter and final examination within 7 years of registration Postal or oral tuition is available from the coaching directorate of the institute through its regional council and recognized institution .Normal period for postal tuitions for inter and final examination is 18 months. examinations are held twice in year June and December.
A student who have passed the final examination can apply to the council for enrolment as' graduate of the institute'. A graduate of the institute has three or more years of practical experience in an industrial or commercial unit may seek associate membership of the institute .An associate member can use the title AICWA after his name. An associate member with 5 years experience can apply to the council for fellowship. After becoming the fellow member, he can use the title FICWA after his name;
Post membership examination includes management accountancy examination which can be taken after a years
associateship. It is held once a year at the same centers and on the same dates as the inter and final examination.
bachelors degree holders with ICWAI can register for M.phil and Ph.d in commerce and allied disciplines.
In the modern management scenario where business are run with the sound judgment and planning and cost and work accountant has a vital role to play. Liberalization and globalization have enhance the importance of cost and work accountants. budgeting ,profit planning, product pricing, inventory and working capital management, capital utilization of resources, energy audit, management audit ,planning of mergers etc. are key areas where the cost and work accountants can contribute his expertise.
CIMA ACCA AICPA:
are internationally recognized bodies offering specialized training in this field.
Chartered Institute of Management accountants (CIMA):
in UK is the only body specializing management accountancy.
Association of chartered certified accountants (ACCA): is recognized in over 130 countries and is available in India also. examinations are monitored by the British council.
Certified public accountants:
Are strategic business advisors and decision makers.
This qualification helps in international placements and with mnc's .The programme is administered by American institute certified public accountants, New York (AICPA)