Cost Accountant Salary: Average Salary, Highest Salary, Experience Wise Salary, Qualification Wise Salary, City Wise Salary 2023

Senior Content Specialist

With the rise in demand for cost accountants in the government banking sector, private sector, finance sector, education, training, developmental agencies, and research, students are inclining towards this field to get a handsome pay in their professional career.

The average income of a Cost Accountant is INR 2,50,000 per year for a fresher. Getting this amount with mere preparation in a year is challenging yet worthy. The salary increases with the growth in experience. An experienced CMA can get a salary up to INR 50,00,000 annually, if they are at the top position in an organization. Due to this, CMA has gained popularity in the last few years.

To become a CMA, a candidate must clear three levels, i.e., Foundation, Intermediate and Final. The fees for the Foundation course is INR 4,000, for Intermediate is INR 20,000 and for the Final course is INR 17,000.

To pass these exams, the candidate must obtain at least 40% marks in each paper that appeared, and must also obtain at least 50% marks in aggregate. After qualifying all these three levels, the candidate has to do 100 hours of Computer Training Programme, 7 hours of Industry Oriented Training Programme, 3 days of Communication Skills and Soft Skill programme, 15 days Modular Training, and Practical training.

To get a valid CMA certificate, the candidates must enrol themselves in the Institute of Management Accountants (IMA). This registration is crucial, and should not be ignored at any cost. The body that conducts examinations for CMAs in India is ICoAI. The Institute of Cost Accountants of India (ICoAI) is a legal professional accountancy body in India, which the Ministry of Corporate Affairs regulates, Government of India. The ICoAI predicts to become the Global Leader in Certified Management Accountancy and become a truly global professional accounting body.

Check: Accounting Courses

Table of Contents

What is Cost Accounting
What Does a Cost Accountant Do?
How to Become a Cost Accountant
Cost Accountant Salary in India

4.1 Qualification Wise Salary

4.2 Cost Accountant Salary in Kolkata

4.3 Cost Accountant Salary in Mumbai

4.4 Cost Accountant Salary in Chennai

4.5 Cost Accountant Salary in Hyderabad

Cost Accountant Average Annual Salary

5.1 Experience Wise

5.2 Gender Wise

5.3 Job Position Wise

Cost Accountant Top Recruiters
Scope of Career as a Cost Accountant
Cost Accountant Salary in India FAQs

What is Cost Accounting?

Cost accounting deals with keeping records of variable and fixed costs of a company.
It is a form of managerial economics that targets to capture the total cost of a company.
Cost accounting deals with all input costs linked with production, management, or other aspects, including fixed and variable costs.
Unlike financial accounting, which is strictly followed by internal administration, cost accounting is flexible.
As a result, it can be modified from time to time to boost the growth and development of a company.
Cost accountants (CMAs) lead various sectors, like pharmaceuticals, metals, auto, energy, finance, IT, and many more, with their specialized knowledge in value creation and business strategy.
Cost accountants make up the top management of different companies and hold positions like Chairman, Managing Director, Finance Director, Cost Controller, Chief Financial Officer, Financial Director, Marketing Manager, Chief Auditor, and many other crucial positions.
Many global marketers have predicted a significant rise in the need for cost accountants is coming in the future.
They will play a key role in expanding the industrial sector from here onwards.
Of course, their flexibility to work under harsh conditions serves as a cherry on the cake. There is no doubt why a cost accountant is a multifaceted professional.

Check: BCom Accounting and Finance

What Does a Cost Accountant Do?

The primary role of a cost accountant is to analyze and report a company's profit and loss margins.
Cost accountants collect all sorts of cost data, including maintenance expenses.
They determine variable costs, like operational costs, purchasing costs, etc., and fixed costs, like salaries, insurance, rents, etc.
They have to prepare cost forecasts every month, every quarter, or year, depending upon the company's requirements.
They must assist in keeping track of year-end and month-end closing.
Cost accountants need to review actual and standard costs for inaccuracies.
They play a significant role in building up data accumulation systems.
They identify loopholes in the costs of a company and provide effective solutions for the same.
They have to prepare budgeting reports for each department in the company.

Check: BCom with CMA

How to Become a Cost Accountant in India?

The role of a cost accountant varies from organization to organization. But their general duty remains the same to handle the financial aspects of a company.

Choosing the right stream from the school days can assist a student in becoming a cost accountant.
The student can choose any subject of their interest except fine arts.
It is not mandatory to select accounts or commerce as the mainstream.
After 12th, one can directly apply to become a CMA if they have qualified for the entrance test and have pursued their undergraduate degree.
Students can start from level 1 of the CMA Foundation course without a graduation degree.
The time taken to become a certified CMA varies from group to level in the CMA Foundation. Every year 6% to 30% of students clear the written exam of CMA.
The Institute of Cost Accountants of India (ICAI) conducts the most rigid examination for one of the most delicate jobs in India.

There are two ways of becoming an official CMA:

First Method to Become a Cost Accountant

Qualify Class 10
Pass Class 12
Appear and Qualify the Examination – Enrol for the Foundation – Computer Training & Soft Skills
Register for Intermediate Level
Register for Final Level
Appear and Qualify the Examination – 15 days Modular Training - 7 days Industry Oriented Training

Second Method to Become a Cost Accountant

Graduate/ CA CPT Pass/ CS Foundation Pass – Enrol for the Foundation – Computer Training & Soft Skills
Appear and Qualify the Examination
Register for Intermediate Level
Appear and Qualify the Examination
Register for Final Level
Appear and Qualify the Examination - 15 days Modular Training - 7 days Industry Oriented Training

Cost Accountant Salary in India

The annual salary of a CMA varies with their levels, the company they work in, and their sector. There is no minimum or maximum wage for CMAs in India. They can get INR 30,000 to INR 1,50,000 a month, which makes CMAs one of the highest paying nationals in India. Their salaries can exceed INR 10,00,000 if they acquire top positions in the company.

The salary of a cost accountant per month in India also depends on the type, of course, they have pursued.

Check: All About CA Course

Qualification Wise Salary

Course Name	Average Annual Salary
BBA in Accounting	INR 2,00,000 to INR 5,00,000
BSc Accountancy	INR 3,00,000 to INR 10,00,000
BA in Accountancy	INR 3,00,000 to INR 10,00,000
BCom Accountancy	INR 2,00,000 to INR 10,00,000
MCom Accountancy	INR 1,80,000 to INR 2,28,000
MBA in Accounting	INR 8,00,000 to INR 25,00,000

Cost Accountant Salary in Kolkata

Kolkata is one of the most populated cities in India. With its growing industrial sector, demand for skilled CMAs to fulfil various requirements is also increasing.
The average salary of a CMA in Kolkata is INR 4,90,000. In addition, they get a bonus of INR 14,000 to INR 30,000 per year.
CMAs are paid less at entry levels than early careers.
There are 80% men and 20% women CMAs working in Kolkata.

Check: List of Top CMA Institutes in Kolkata

Cost Accountant Salary in Mumbai

Mumbai is rich in industries and manufacturing units.
They require both skilled and unskilled workers to boost the growth of the state.
The average salary of a cost accountant here is INR 5,00,000 per year.
There are 83% men and 17% women CMAs working in this city.
The middle and experienced level workers are paid the most in this city.

Check: List of Top CMA Institutes in Mumbai

Cost Accountant Salary in Chennai

CMAs in Chennai are paid more than any other regional CMAs because of the competition to grab the top post in an organization.
The average salary is INR 7,00,000 per year.
They also get a higher bonus than any other state’s CMAs.

Check: List of Top CMA Institutes in Chennai

Cost Accountant Salary in Hyderabad

Hyderabad is one of the biggest cities (area-wise) in India.
The average salary of a CMA is INR 6,00,000 per year.
The gender gap of working in an organization is 1:3, female and male respectively.
Here, the workers are more prone to harsh industrial climates. Therefore, suffering from poor dental conditions and low eyesight.

Check: List of Top CMA Institutes in Hyderabad

Cost Accountant Average Annual Salary

The first question that comes to everyone’s mind is ‘how much will I be paid if I become a CMA’. Well, the answer depends upon your experience level, organization, location, and a little, on your gender (if you are working in a private firm).

The starting salary of a cost accountant in India per month is INR 25,000, which is more than the salary of a Certified Public Accountant (CPA).
This is quite natural that skilled CMAs will be paid more than their fresher counterparts, and industrial and well-developed regions will pay their CMAs more than rural or semi-developed regions.

The following categories sum up the salaries of a CMA based on different criteria:

Check: Commerce Courses after 12th

Experience Wise Salary

Experience Level	Average Annual Salary
Fresher (0-1 year)	INR 2,00,000 to INR 4,00,000
Mid-level (2 to 5 years)	INR 5,00,000 to INR 10,00,000
Experienced (5+ years)	INR 12,00,000 to INR 25,00,000

Gender Wise Salary

Payscale is fixed for the government employees irrespective of their genders. Some private organizations pay both genders equally. Yet, their salary varies as under:

Gender	Average Annual Salary
Men (fresher)	INR 2,50,000 to INR 5,50,000
Men (experienced)	INR 15,00,000 to INR 30,00,000
Women (fresher)	INR 2,00,000 to INR 5,00,000
Women (experienced)	INR 12,00,000 to INR 25,00,000

Job Position Wise Salary

There are numerous posts within an organization that are handled by CMAs. Their salary also differs per their posts. Some of the major posts and their salaries include:

Job Position	Average Annual Salary
Financial Analyst	INR 5,20,332
Financial Manager	INR 10,72,519
Chief Financial Officer (CFO)	INR 36,98,416
Senior Financial Analyst	INR 8,17,036
Accountant	INR 2,92,774
Certified Management Accountant	INR 5,00,000
Cost Accountant	INR 7,00,000
Senior Finance Manager	INR 19,99,945
Finance Director	INR 37,18,945
Vice President (VP), Finance	INR 40,00,000
Financial Controller	INR 24,35,000
Senior Accountant	INR 4,79,685
Finance Analyst	INR 5,40,449
Internal Auditor	INR 5,85,549

Cost Accountant Top Recruiters

Following are the names of the top recruiters who recruit cost accountants in India.

Rashtriya Ispat Nigam Limited	ONGC	SAIL
Godfrey Phillips India Limited	Hero MotoCorp Ltd	Accenture
ITC Tobacco Division	ITC Food Division	ITC Hotels
L&T Constructions	Wipro	Amazon
Nestle	Power Grid Corporation on India	Vedanta Limited
Cipla Ltd.	Bharat Electronics Ltd.	Galaxy Surfactants
National Handicapped Finance and Development Corporation	Hindustan Salts Limited	RSM Astute Consul ng Group
Electrosteel	Capgemini	TAX Connect

Check: BCom Course Details

Scope of Career as a Cost Accountant

If a CMA works independently, they are free to do so. However, they must check the details thoroughly in this regard.
A certified CMA can work after completing both undergraduate and postgraduate degrees.
He can set up his venture as a sole proprietor or with like-minded cost accountants in a partnership.
They can fix meetings with the clients of public and private sectors and work with them accordingly.
A certified CMA can work both independently and for the organization.
Undoubtedly, cost accountancy edges over financial accounting. The former field is more diverse and promotional.
Many companies look for budgeting specialists who can reduce their expenditures and bring wealth to the institution.
CMAs promote the adoption of numerous scientific methods to boost the efficiency of the industry.
They are the driving force in the management team. Therefore, the prominent role of the cost accountants is to lead the way of a company to achieve new heights.

Cost Accountant Salary in India: FAQs

Ques. How much does it cost to become a CMA?

Ans. It costs approximately around INR 20,000 to become a Cost Accountant in India.

Ques. Is cost accounting a promising career in India?

Ans. Cost accountants are ranked amongst the top-paid workers in India. They grab the top positions in various organizations that boost their pay scale. Promotional chances increase if you work in India’s top-leading brands. As a result, CMAs grow and earn simultaneously in their careers.

Ques. CIMA, ACCA or CMA in India?

Ans. The answer purely depends upon the interest of students. If one wants to do audit, compliance, tax, etc., they should do CA or ACCA. On the other hand, if one wants to do business or make their career in business strategies, go for CMA.

Ques. Can I do a CMA in the USA after completing a CMA in India?

Ans. Yes, one can do the same. However, check the college details and requirements where you want to pursue the course.

Ques. Which is the best place to pursue CMA in India?

Ans. Some of the top institutes are namely, IIT Bombay, DTU Delhi, Presidency College, etc.

Ques. What are the best coaching institutes for studying CMA/CA/CS in India?

Ans. Coaching institutes in Chennai, New Delhi, and Mumbai tend to produce more CMAs than any other part in India. So, one can look for the best ones according to their fee budget.

Ques. Is a professional course like CA better than CS and CMA in India?

Ans. CA deals with accounts and commerce, whereas CMA deals with business strategies and marketing. With the growing economy, CA steps ahead of CMA. However, the CA exam is more challenging than CMA.

Ques. Does a CMA have a better scope in India or the US?

Ans. CMAs will have a better scope where industries and the economy is boosting. If a CMA wants to work in industries and manufacturing units, India is the place. If a CMA wants to work off-site, then they must visit the USA.

Ques. Is the MOU between the IMA and the CMA in India renewed?

Ans. MOUs are a good sign of strengthening relations between different bodies. But, the MOU between IMA and CMA is not yet renewed.

Ques. How can I register myself for the US CMA in India?

Ans. Visit the IMA website, log in with your account and register yourself for a CMA course.