Production Cost Accountant

# Production Cost Accountant

• Reporting To:** Factory Head
• Industry:** Food / Bakery / FMCG Manufacturing
  
  

### Job Purpose

Responsible for monitoring and analysing production costs, material consumption, labour costs, wastage, production efficiency and inventory to ensure accurate product costing and effective cost control.

### Key Responsibilities

**1\. Production Costing**

• Calculate and monitor the cost of production for various products.
• Prepare product-wise and batch-wise costing based on raw materials, labour and production overheads.
• Maintain and update **BOM (Bill of Materials)** and standard costing.
• Compare standard cost with actual production cost and identify variances.
• Analyse cost per unit/kg/batch and report significant deviations.
  
  

**2\. Raw Material & Consumption Analysis**

• Monitor raw material consumption against standard/BOM quantities.
• Analyse excess consumption, wastage, rejection and process losses.
• Coordinate with Production, Stores and Purchase teams for cost-related issues.
• Verify material issues and consumption recorded against production.
  
  

**3\. Production Variance Analysis**

• Prepare daily/weekly/monthly production cost variance reports.
• Analyse variances relating to:
• Raw material consumption
• Purchase price
• Production quantity
• Yield
• Wastage
• Labour
• Electricity/fuel
• Packaging material
• Other factory overheads
• Highlight abnormal variances to management and suggest corrective actions.
  
  

**4\. Inventory & Stores**

• Monitor raw material, packaging material, WIP and finished goods inventory.
• Support periodic physical stock verification and reconciliation.
• Identify slow-moving, excess, obsolete and damaged inventory.
• Ensure proper accounting and valuation of production inventory.
  
  

**5\. Factory Cost Control**

• Monitor production expenses including manpower, electricity, fuel, repairs, maintenance and other factory overheads.
• Analyse cost per unit and identify opportunities for cost reduction.
• Track production efficiency, yield and capacity utilisation.
• Prepare management reports on factory cost performance.
  
  

**6\. MIS & Management Reporting**

• Prepare monthly **Production Costing & Cost Variance MIS**.
• Prepare product-wise profitability/cost analysis.
• Provide cost-related data for pricing and new product development.
• Prepare budget vs. actual cost reports.
• Support Finance Head/Factory Head with cost-related analysis and decision-making.
  
  

**7\. Coordination & Audit**

• Coordinate with Production, Stores, Purchase, Quality and Finance teams.
• Ensure proper documentation of production records and consumption data.
• Support internal, statutory and cost audit requirements.
• Ensure accuracy and completeness of cost records.
  
  

### Key Performance Indicators (KPIs)

• Accuracy of product costing
• Timely submission of cost MIS
• Reduction in material consumption variance
• Reduction in production wastage
• Accuracy of BOM and standard costing
• Inventory reconciliation accuracy
• Identification of abnormal cost variances
• Cost savings identified and implemented
• Timely completion of monthly costing
  
  

### Qualification

• B.Com / M.Com / MBA Finance / CMA (Inter/Qualified) or equivalent.
• Candidates with Cost Accounting / Management Accounting exposure will be preferred.
  
  

### Experience

• **2–5 years** of experience in Costing / Plant Finance / Production Accounting.
• Experience in **FMCG, Food, Bakery, Manufacturing or similar industries** preferred.
• Candidates with hands-on experience in product costing, BOM, inventory and variance analysis will be preferred.
  
  

### Skills Required

• Strong knowledge of **production costing and cost accounting**
• Good understanding of BOM and standard vs. actual costing
• Excellent Excel skills
• Good analytical and numerical skills
• Knowledge of inventory accounting
• Ability to identify cost leakages and abnormal variances
• ERP/accounting software knowledge
• Good coordination with factory and finance teams
  
  

### Preferred Candidate Profile

A hands-on finance professional who can work closely with the **Factory, Production, Stores and Purchase teams** , independently analyse production costs and provide management with actionable information for improving **cost efficiency, productivity and profitability**.

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