What skills does a cost analyst need?

A cost analyst needs 13 essential skills including financial department processes, liquidity management, cost management, company policies, prepare cost-plus pricing models. Core competencies include .

Will AI replace cost analyst jobs?

The AI disruption score for cost analyst is 81/100 (very high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

Financial ServicesBusiness and administration professionalsISCO 2411

cost analyst

Cost analysts prepare regular costs, budgeting analyses and reports in order to contribute to the overall cost planning and forecasting activities of a business. They review and reconcile key balance sheets and identify new opportunities to save costs.

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (13)

financial department processesfinancial department processesThe different processes, duties, jargon, role in an organisation, and other specificities of the financial department within an organisation. Understanding of financial statements, investments, disclo...liquidity managementliquidity managementThe theory and practices around the management of liquidity in a company with the aim of facilitating meeting obligations with thirds parties without compromising the smooth functioning of the company...cost managementcost managementThe process of planning, monitoring and adjusting the expenses and revenues of a business in order to achieve cost efficiency and capability.company policiescompany policiesThe set of rules that govern the activity of a company.prepare cost-plus pricing modelsprepare cost-plus pricing modelsMake up cost and pricing models on a regular basis by taking into account the cost of materials and supply chain, personnel and operating costs.provide cost benefit analysis reportsprovide cost benefit analysis reportsPrepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment i...synthesise financial informationsynthesise financial informationCollect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...evaluate budgetsevaluate budgetsRead budget plans, analyse the expenditures and incomes planned during certain period, and provide judgement on their abidance to the general plans of the company or organism.identify process improvementsidentify process improvementsIdentify possible improvements to operational and financial performance, in order to increase productivity, efficiency, quality, and streamline procedures.perform cost accounting activitiesperform cost accounting activitiesExecute the cost related activities and operations within the accounting activities such as standard cost development, average pricing analysis, margin and cost ratio analysis, inventory control, and ...control of expensescontrol of expensesMonitor and maintain effective cost controls, in regards to efficiencies, waste, overtime and staffing. Assessing excesses and strives for efficiency and productivity.assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...

Optional (20)

financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.support development of annual budgetsupport development of annual budgetSupport the development of the annual budget by producing base data as defined by the operations budget process.advise on tax planningadvise on tax planningAdvise on appropriate strategies to include taxes in the overall financial plan in order to reduce the tax load. Advise on questions related to tax legislation and provide advise on the possible impli...manage budgetsmanage budgetsPlan, monitor, report on the budget and prepare set production budgets.enforce financial policiesenforce financial policiesRead, understand, and enforce the abidance of the financial policies of the company in regards with all the fiscal and accounting proceedings of the organisation.carry out tenderingcarry out tenderingPlace the request for a quotation to the organisation requesting a tender, then perform the work or supply the goods agreed with them during the tendering process.execute analytical mathematical calculationsexecute analytical mathematical calculationsApply mathematical methods and make use of calculation technologies in order to perform analyses and devise solutions to specific problems.manage payroll reportsmanage payroll reportsMaintain personnel records as well as payroll reports. Record evaluations, promotions or disciplinary actions.create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.prepare financial statementsprepare financial statementsCollect, entry, and prepare the set of financial records disclosing the financial position of a company at the end of a certain period or accounting year. The financial statements consisting of five p...analyse transportation costsanalyse transportation costsIdentify and analyse transportation costs, service levels and availability of equipment. Make recommendations and take preventive/corrective measures.calculate production costscalculate production costsCalculate the costs for every production stage and department.analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...manage inventorymanage inventoryControl product inventory in balance of availability and storage costs.exert expenditure controlexert expenditure controlAnalyse expenditure accounts against the income and usages of different company units, companies, or organisms at large. Recommend usage of financial resources in efficient manners.disseminate information on tax legislationdisseminate information on tax legislationProvide advise on the possible implications for companies or individuals on decisions regarding tax declaration based on tax legislation. Advise on the favourable tax strategies that could be followed...negotiate supplier arrangementsnegotiate supplier arrangementsReach an agreement with the supplier upon technical, quantity, quality, price, conditions, storage, packaging, send-back and other requirements related to the purchasing and delivering process.explain accounting recordsexplain accounting recordsProvide additional explanation and disclosure to staff, vendors, auditors, and to any other instance about the way accounts were recorded and treated in the financial records.create a financial reportcreate a financial reportFinalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.