What is a cost analyst and how to become one

Updated January 8, 2025

5 min read

Quoted Expert

Christopher Ball Ph.D.

Cost analysts are individuals who evaluate the costs of products, services, and projects to help companies make informed decisions about pricing, budgeting, and resource allocation. They use financial data and statistical models to identify cost drivers, assess cost trends, and optimize cost structures. They also work closely with other departments such as accounting, operations, and sales to gather data and provide insights that support business strategies. Cost analyst roles typically require strong analytical skills, financial acumen, and proficiency in spreadsheet software.

What general advice would you give to a Cost Analyst?

Christopher Ball Ph.D.

Director Central European Institute & Istvan Szechenyi Chair Associate Professor of Economics, Quinnipiac University

Economics is a broad, analytical, and generally more quantitative significant. Because it's a social science, that helps students understand nearly any field because they know all fundamental interactions between people in markets (supply and demand) or inside workplaces (incentives, optimal production, etc.). And because much of economics focuses on the market place (supply and demand), our majors have an understanding of the core principles involved in all business disciplines. As a result, I recommend our students aim for more quantitative jobs and those using more analysis. The specific field is less important, and I always recommend people seek employment in areas they like. When you enjoy something, you work harder, and you are more likely to succeed. Because economics forms the basis of so many things in business, from the marketing to production to the management, economics majors tend to start similarly to other majors and then change trajectories and rise faster than other majors. A few years out and they are ideal for management because they can apply economic concepts to any area and learn the basics quickly.
However, if someone is quantitatively oriented and added a technical minor to the econ major like data science or something, then those students are in super high demand, COVID crisis or not. We still see them graduating with some of the highest starting salaries and having much higher wage,s just five years out, than most other graduates. All the benefits of economics being analytical and quantitative combines well with those hardcore data skills to form a compelling combination.

ScoreCost AnalystUS Average

Salary

4.2

Avg. Salary $54,158

Avg. Salary $59,228

Stability Level

6.5

Growth Rate 3%

Growth Rate 0.3%

Diversity

3.8

Race

American Indian and Alaska Native 1.01%

Asian 8.58%

Black or African American 10.12%

Hispanic or Latino 16.10%

Unknown 4.71%

White 59.48%

Gender

female 45.84%

male 54.16%

Age - 47

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 47

Stress Level

6.5

Stress level is high

7.1 - high

Complexity Level

8.6

Complexity Level is advanced

7 - challenging

Work Life Balance

4.7

Work Life balance is fair

6.4 - fair

What are the pros and cons of being a Cost Analyst?

Pros

Good salary and job security
Chance to work with a variety of teams and departments
Exposure to different industries and business models
Valuable skills in data analysis, forecasting, and budgeting
Opportunities for professional development and training

Cons

High pressure and tight deadlines
Can be repetitive or monotonous work at times
May require working long hours or overtime during certain periods of the year
Can be stressful when working on complex projects or dealing with difficult stakeholders
May involve frequent changes in priorities or shifting project timelines

Key steps to become a cost analyst

Explore cost analyst education requirements

Most common cost analyst degrees

Bachelor's

74.0 %

Master's

12.1 %

Associate

10.1 %

Start to develop specific cost analyst skills

Skills	Percentages
Cost Analysis	7.69%
Financial Analysis	6.48%
Cost Estimates	6.17%
Data Analysis	4.20%
DOD	3.69%

Complete relevant cost analyst training and internships

Accountants spend an average of 6-12 months on post-employment, on-the-job training. New cost analysts learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as a cost analyst based on U.S. Bureau of Labor Statistics data and data from real cost analyst resumes.

Research cost analyst duties and responsibilities

Manage general ledger expense accounts assign to ERP implementation project.
Develop, maintain financial models/applications (VBA Excel/Access) to automate and streamline business processes and perform financial analysis.
Perform cost control, revenue analysis and variance analysis for several DOD contracts.
Identify parts that need to be realign to correct WBS s in order to bring costs inline.

Prepare your cost analyst resume

When your background is strong enough, you can start writing your cost analyst resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a cost analyst resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

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Apply for cost analyst jobs

Now it's time to start searching for a cost analyst job. Consider the tips below for a successful job search:

Browse job boards for relevant postings
Consult your professional network
Reach out to companies you're interested in working for directly
Watch out for job scams

How do cost analysts rate their job?