The Cost Accountant position is a member of the Finance Department. This position supports the operations of Snak King by interpreting financial data and analysis for cost accounting and inventory into the appropriate operational environment. This position guides the provision of timely, meaningful, and accurate financial information and processes in the area of: Maintenance and Evaluation of the Standard Cost Accounting System, Daily Cost of Production Analysis, Daily Inventory Processes and Controls, Manufacturing Financials and Analysis, and Monthly Closing Cycles. The accuracy requirement is high due to the dollar value of fiscal accountability levels. Responsibility level is high considering the use of this information in managing resources, achieving daily and strategic goals for the organization, and meeting G&A, capital, and income targets.
The position is directly responsible for the following duties:
Standard Cost Accounting System: As a key element of this responsibility, the Cost Accountant generates the annual standard cost per case for each product planned, produced, and sold by Snak King. The standard cost per case represents a) the Bill of Material, including all raw materials, ingredients, work-in-process, and packaging components required to generate a finished goods product; and b) the Bill of Operation, including all variable labor and fringe associated with the production of a finished goods product, and c) the fixed overhead. Through the utilization of both electronic and manual financial tools, the cost accountant directs cyclical and on-going efforts to process and reconcile all detailed elements of the standard cost per case, including operational line speeds, manning requirements, ingredients, and packaging components to ensure accuracy in the standard. The Cost Accountant assists in the preparation of the annual budget. This position also makes recommendations for streamlining and improving the flow of information contained in the standard cost to ensure timely generation of cost estimates on an on-going basis. Close attention to specialized operational requirements is required. Strong interaction with appropriate business partners, such as operations, manufacturing, sales, and marketing is essential for maintaining current knowledge of projects, deliverables, and goals of Snak King.
Daily Cost of Production Analysis: The Cost Accountant is responsible for the delivery of a daily “cost of production” report to key operations and financial management at Snak King. This requires reconciliation of the following areas:
- Operations case count of production
- All product on “hold” status through QA.
- Warehouse receipt of finished goods production.
- Total pounds of production
Direct Labor Cost Reporting:
- Explosion of direct labor variable rates per case for the reconciled case counts
- Accumulation of direct labor variable hours and rates for all activities associated with the production of reconciled case counts.
- Comparison of standard labor dollars vs. actual labor dollars in total, by product family group and on a cost per case basis
Materials Usage Reporting:
- Material explosion of all raw material and packaging requirements based on standard cost and reconciled case counts.
- Analysis of all in-out activity surrounding appropriate raw material and packaging components during the production cycle.
- Comparison of standard loss rates vs. actual loss rates
Daily Inventory Processes and Controls: The Cost Accountant is responsible for the accurate recording through key systems of all movement of ingredients, raw materials, work-in-process, and packaging components daily. The position is responsible for establishing the appropriate controls and consistent procedures to track all activities surrounding these assets. The total prior day ending inventory, plus production accepted into the warehouse and available to ship, minus shipments, plus or minus approved adjustments, plus holds equals the close of day recorded inventory. This reconciliation is required at the SKU level. The Plant Accountant’s approval is required for any adjustment to book inventories vs. cycle counts, within established tolerance levels.
Manufacturing Financials and Analysis: The Cost Accountant provides the detailed supporting documentation for the General Accounting Manager to record the monthly cost of production to the general ledger. All costs recorded at month end, such as direct labor, raw materials, ingredients, work-in-process, and packaging components should be reconciled to the sum of the running totals from the daily production financial reports. Any variances should be reconciled before the accounting period is formally closed through the General Accounting Manager. On a monthly basis, the Cost Accountant is responsible for the detailed financial and quantity analysis of the key variances associated with the manufacturing operations at Snak King, including purchase price variances, freight costs over and under, direct labor rate variances, volume and mix variances, Bill of Material losses over and under standard, as well as inventory adjustments from cycle and physical inventory counts.