About Certified Management Accountants

Certified management accountants (CMA) is an integral part of a company's management team. Their input and analysis of costs provide a basis for the company's budgets, planning and strategy. However, CMA's are about much more than cost control.

Function

Before a product is put on the assembly line, company management must know the costs. Certified management accountants not only calculate the costs of making a product, they also ensure that the manufacturing process stays on or under budget. The cost of making each product is called a unit cost. Certified management accountants use the unit costs and other cost factors to determine the price of products on the store shelves.

Significance

Certified management accountants dictate the costs on everything from production to marketing. Their goal is to keep company costs low while maximizing profits and maintaining quality. They are more important to the company than the general accountant because by the nature of their duties in the company, CMAs must know the product, its manufacturing process and marketing plan. Such intimate company knowledge makes the management accountant the most important person in the management team. This knowledge also gives the management accountant its secondary title of controller in some companies.

Types

The job description of a certified management accountant is universal; however, the title changes with the location of the company. In some countries, the title is more descriptive. In India, for example, the management accountant is called the cost and works accountant. In Canada, the title is a bit vaguer: chartered management accountant. No matter what the title or location, the management accountant has the duty of controlling costs.

Benefits

Companies, especially those with multiple product lines, need a certified management accountant to ensure that costs stay low without compromising the quality of the product. Management accountants draw up budgets for each product ton which the management team bases its marketing and production strategies. Without these accountants on the management team, essential budgets and planning would take precious time away from other areas of production, such as quality control, research and development.

Features

Certified management accountants require many hours of training to master their craft. They must first complete at least four years of college education in accounting. Some states require more, so many certified management accountants also have MBA degrees. All must take a state administered exam and complete a set number of on-the-job training hours before obtaining certification. CMAs must be proficient in business analysis, management accounting and reporting, business strategies, marketing and many more business and accounting related topics. Although their work is primarily in the area of production, a certified management accountant is trained for and must be able to handle tax and general accounting and finance.