What is Cost Analysis?
Cost analysis, also known as cost-benefit analysis, refers to analyzing how a company's money is used, whether this is expenses of the company itself or the cost of the current production method. This method also takes the number of products sold into consideration to determine whether the manufacturing process is benefiting or harming the company's profits.
How is Cost Analysis used?
Zippia reviewed thousands of resumes to understand how cost analysis is used in different jobs. Explore the list of common job responsibilities related to cost analysis below:
- Contributed significantly to financial budgeting preparation and analysis; inventory valuation and product cost analysis; and operational analysis.
- Conducted cost analysis and profitability analysis for the procurement process.
- Separated labor and non labor cost in CIW for GL reporting and Production Scorecard cost analysis on monthly basis.
- Developed complex reports to compare crude usage data from various carriers to provide cost analysis.
- Worked closely with project managers to prepare monthly invoicing and contract cost analysis.
- Perform cost analysis and risk assessment for capital and labor proposals.
Are Cost Analysis skills in demand?
Yes, cost analysis skills are in demand today. Currently, 6,363 job openings list cost analysis skills as a requirement. The job descriptions that most frequently include cost analysis skills are contract finance analyst, cost analyst, and cost controller.
How hard is it to learn Cost Analysis?
Based on the average complexity level of the jobs that use cost analysis the most: contract finance analyst, cost analyst, and cost controller. The complexity level of these jobs is challenging.
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What jobs can you get with Cost Analysis skills?
You can get a job as a contract finance analyst, cost analyst, and cost controller with cost analysis skills. After analyzing resumes and job postings, we identified these as the most common job titles for candidates with cost analysis skills.
Contract Finance Analyst
Job description:
A contract finance analyst specializes in evaluating and managing contracts to help companies avoid financial losses and disputes. It is their duty to understand the needs and goals of a company, review contracts thoroughly, analyze the clauses and liabilities, negotiate contract terms, and recommend amendments on behalf of the clients. There are also instances where they must prepare and process documentation, maintain records, and provide departments with cost-effective methods to comply with the contract's obligations. Above all, a contract finance analyst must monitor every amendment and procedure.
- Financial Analysis
- SQL
- Cost Analysis
- Financial Data
- Reconciliations
- Journal Entries
Cost Analyst
Job description:
Cost Analysts are employees with a strong background in finance or accounting. They are in charge of collecting financial data and analyzing the entries. They study the company's expenses and prepare pertinent reports. Cost Analysts look for inconsistencies in the financial data. This way, they can assist in auditing the company's spending. Cost Analysts also look for inefficiencies. They do so by tracking item costs and department budgets and monitoring department expenses. They are also involved in budget-setting activities.
- Cost Analysis
- Financial Analysis
- Cost Estimates
- Data Analysis
- DOD
- Variance Analysis
Cost Controller
Job description:
A Cost Controller manages the project costs. Cost Controllers' tasks include developing, controlling, planning, and forecasting the project's budget. They make sure that projects are completed within the approved budget and minimize the deflection from it. Cost Controllers should know about total cost management concepts, budget distribution, and setting a cost limit. They should also know how to detect issues, analyze cost reports, and value management. Being a cost controller also requires skills to effectively communicate the project's cost performance, concerns, and recovery plans to the project team.
- Project Management
- Cost Analysis
- Financial Statements
- Cost Estimates
- Variance Analysis
- Cost Data
Senior Cost Engineer
- Cost Engineering
- Construction Management
- Cost Analysis
- Cost Models
- Cost Estimates
- Project Controls
Cost Engineer
Job description:
A cost engineer is responsible for projecting cost and expenses reports for the production process, identify and mitigate risks, and develop strategic techniques to reduce the excessive financial loss for project buildings. Cost engineers conduct data and statistical analysis to measure time deliverables and quality checks to ensure profitability and adherence to business objectives. They research and negotiate materials from trusted suppliers and vendors with high-quality products that would meet construction designs and client specifications.
- Project Management
- Cost Analysis
- Construction Management
- Project Controls
- Cost Data
- Cost Models
Senior Cost Analyst
Job description:
Senior cost analysts are lead professionals who collaborate with a variety of departments to gather financial data and perform analysis to uncover inefficiencies. These analysts are required to develop accurate cost estimates that are used in producing pricing quotations on products and programs. They must utilize the enterprise resource planning (ERP) business system to track the quotation process and maintain standard costs through cost roll activities. Senior cost analysts must also collaborate with managers to facilitate initiatives and projects that are cost-saving.
- Financial Analysis
- Cost Analysis
- Cost Estimates
- Reconciliations
- DOD
- Variance Analysis
Quantity Surveyor
- Construction Projects
- QS
- Cost Estimates
- Contractual Claims
- Cost Analysis
- Cost Control
Purchase Analyst
Job description:
A purchase analyst is responsible for looking at the market outlook and determining what and when to buy when ordering supplies. They are responsible for making an investment in a product or technology, and contracting with vendors. You have varied duties and responsibilities that include researching product prices and comparisons, determining price history and cost-effectiveness, and providing leadership for logistics, resource management decisions, and sourcing. You will also be responsible for purchasing equipment from suppliers and working closely with leadership to develop sourcing strategies.
- Purchase Orders
- Supplier Performance
- Continuous Improvement
- ERP
- Cost Analysis
- Logistics
Cost Accountant
Job description:
A cost accountant specializes in determining the total cost incurred by a company from producing goods and services. Through the various financial data they collect, the cost accountant will devise plans and strategies that will be a vital factor in the next budget and marketing preparations of a company. Aside from this, a cost accountant is responsible for various tasks such as conducting research and analysis in different areas, keeping financial records and inventory, producing financial reports involving profitability and expenditures, and proposing a budget and other financial plans.
- Reconciliations
- Variance Analysis
- GAAP
- Account Reconciliations
- Cost Analysis
- Financial Analysis
Cost Estimator
Job description:
A cost estimator is responsible for conducting data and statistical analysis and cost forecasting to determine the duration, budget limitations, and required resources for project construction and development. Cost estimators identify possible cost-reduction techniques by researching the market and negotiating with suppliers and vendors with high-quality deliverables. They also review project plans and blueprints to provide accurate estimation reports for reference. A cost estimator must have excellent communication and analytical skills, documenting every progress, and adjust estimation plans as needed.
- Worksheets
- Risk Analysis
- Project Management
- Cost Analysis
- PowerPoint
- DOD
How much can you earn with Cost Analysis skills?
You can earn up to $64,424 a year with cost analysis skills if you become a contract finance analyst, the highest-paying job that requires cost analysis skills. Cost analysts can earn the second-highest salary among jobs that use Python, $54,158 a year.
Job Title  | Average Salary | Hourly Rate |
|---|---|---|
| Contract Finance Analyst | $64,424 | $31 |
| Cost Analyst | $54,158 | $26 |
| Cost Controller | $76,697 | $37 |
| Senior Cost Engineer | $86,004 | $41 |
| Cost Engineer | $87,901 | $42 |
Companies using Cost Analysis in 2025
The top companies that look for employees with cost analysis skills are U.S. Department of the Treasury, CDM Smith, and Black & Veatch. In the millions of job postings we reviewed, these companies mention cost analysis skills most frequently.
| Rank | Company | % Of All Skills | Job Openings |
|---|---|---|---|
| 1 | U.S. Department of the Treasury | 30% | 0 |
| 2 | CDM Smith | 12% | 14,499 |
| 3 | Black & Veatch | 8% | 4,707 |
| 4 | Ernst & Young | 5% | 12,242 |
| 5 | Robert Half | 4% | 9,772 |
Departments using Cost Analysis
| Department | Average Salary |
|---|---|
| Construction | $62,774 |
| Accounting | $59,851 |
5 courses for Cost Analysis skills
1. Principles of Cost Benefit Analysis
This course introduces the principles of cost benefit analysis and provides a clear structure for conducting or evaluating a cost benefit analysis. The course begins by discussing what cost benefit analysis can be used for, in what kinds of situations it has been used in real life, and why it is preferred to some other methods for analysing whether a project should be implemented or not. It then moves on to introduce 10 steps for conducting a cost benefit analysis, and explains these steps carefully one by one. Examples and references to real life are provided throughout the course. Additionally, throughout the steps one particular example is followed through to provide some flesh to the story. After the steps, the course also discusses some shortcomings of the method and the importance of making policy recommendations after the analysis. After the course the student should have a clear overview of cost benefit analysis and its possibilities, but also be aware of the shortcomings of the method. The student knows the structure or the cost benefit analysis and can use the structure to conduct their own analysis or evaluate an existing one...
2. Managerial Accounting: Cost Behaviors, Systems, and Analysis
In this course, you will learn how to use accounting to facilitate and align decisions made by owners, managers, and employees. You will learn how accountants create, organize, interpret, and communicate information that improves internal processes and allows organizations to identify and leverage opportunities to create value within the supply chain and with customers. You will be able to: • Understand what managerial accounting is and why it is an important function for successful businesses • Identify problems associated with relying on financial accounting information for internal decision making • Organize cost information according to the decision-making needs of the organization • Apply activity-based costing (ABC) and recognize circumstances and decisions for which ABC systems are relevant • Address common "what-if" questions using cost-volume-profit (CVP) analysis and apply CVP in a variety of scenarios This course is part of Gies College of Business’ suite of online programs, including the iMBA and iMSM. Learn more about admission into these programs and explore how your Coursera work can be leveraged if accepted into a degree program at https://degrees.giesbusiness.illinois.edu/idegrees/...
3. Flexible Budgets, Standard Costs, & Variance Analysis
This comprehensive Udemy course combines insights from college topics generally covered by managerial accounting textbooks with practical applications to provide a deep understanding of essential tools in managerial accounting. To set the right foundation, we begin by introducing managerial accounting topics and contrasting them with financial accounting. This establishes the correct mindset for the course, ensuring a clear understanding of the distinctive features and objectives of managerial accounting. We then delve into flexible budgets, exploring their advantages over static or fixed budgets. Through interactive example problems and step-by-step instructional videos, you will grasp the benefits of flexible budgets and learn how to utilize them effectively. Next, we define and analyze standard costs and cost variance analysis. While providing an overview of cost variance analysis concepts, we will progressively dive deeper into each topic, equipping you with practical skills to identify and interpret cost variances. Sales variance analysis will be thoroughly covered, including its purpose, calculation methods, and real-world applications. By working through example problems and following detailed instructional videos, you will gain hands-on experience in calculating sales variances. Direct materials variance analysis will be explored comprehensively, demonstrating its practical use and calculation methods. Through instructional videos and example problems, you will master the application of direct materials variance analysis concepts. Direct labor variance analysis will also receive extensive attention, ensuring a comprehensive understanding of its purpose and applications. Through instructional videos and practical examples, you will acquire the skills to calculate and interpret direct labor variances. Overhead variance analysis will be discussed in detail, highlighting its significance in cost management. You will understand why overhead variance analysis is used and learn how to calculate and analyze overhead variances. Through demonstration presentations, example problems, and step-by-step instructional videos, you will navigate the intricacies of overhead variance analysis. As a capstone, we will provide comprehensive problems on overhead variance and variance analysis. With preformatted Excel worksheets and accompanying instructional videos, you will have the opportunity to apply your knowledge and skills in solving complex variance analysis scenarios. The Excel worksheets will guide you through the step-by-step problem-solving process, enabling a hands-on experience to reinforce your understanding. Join us on this transformative journey of mastering managerial and cost accounting tools. Enroll now and unlock the power of variance analysis and budgeting for effective decision-making and financial management...
4. Cost Volume Profit Analysis (CVP) - Managerial Accounting
Unlock the power of managerial and cost accounting with our comprehensive Udemy course. This course dives deep into the crucial managerial accounting concept of cost-volume-profit (CVP) analysis, a dynamic tool that helps businesses determine how changes in costs and volumes affect their profits. We kick off the course with a robust introduction to managerial accounting and cost accounting, clearly outlining their differences. The central tool for our exploration will be the Contribution Margin Income Statement, providing a roadmap as we delve into each component of CVP analysis. Intricate concepts such as mixed costs are broken down, discussing their implications, and how to handle them effectively using methods like the high-low method and scatter diagram method. Grasp the fundamental concept of break-even point in both units and revenue, building a strong foundation for subsequent topics in cost-volume-profit analysis. Forecasting becomes less daunting as we illuminate how CVP analysis can be leveraged for accurate projections and informed decision-making. For businesses with multiple inventory products, we elucidate techniques to apply CVP analysis effectively, ensuring a wide application of the knowledge acquired. Further, we navigate the concept of operating leverage - understanding its calculation and usefulness in business operations. We openly discuss the assumptions that underlie CVP analysis and address its potential limitations, ensuring you have a well-rounded understanding of its application in real-world scenarios. The course features a comprehensive problem worked out using Excel, with step-by-step instructional videos to ensure you can follow along and fully grasp the application of the concepts learned. With numerous Excel worksheets to assist your learning, you'll be able to practice and consolidate your understanding at every stage. Worksheets typically include three tabs - one with the completed problem, another with a preformatted worksheet to fill in, and a blank worksheet, enabling you to build your own tables from scratch if desired. Whether you're an aspiring accountant, a business owner, a financial professional or a student, this course will arm you with the skills to navigate and apply cost-volume-profit analysis, and take your understanding of managerial and cost accounting to new heights...
5. Cost of Quality Analysis and Reporting using Microsoft Excel
A complete plan of attack for molding your quality cost information into an informative report that will grab the attention of anyone who cares about the bottom line of your company. Learn the four standard cost of quality categories. Learn how to gather the essential building blocks of your report. Then learn to analyze and summarize this data to DRIVE IMPROVEMENT within your company. In this course, you will learn: What raw data to collect and how to collect itThe four cost buckets: Prevention, Appraisal, Internal and ExternalSources of Quality Costs like payroll, scrap data, training data, customer complaints, returned product freight, etc. How to use Excel formulas like VLOOKUP to speed up your data summaryFormatting and distributing your COQ report for maximum impactHow products are costed from raw material through finished goodsTrends and patterns in COQ dataEstimating defect costs in a process seriesHow to effectively use the provided Excel templatesAnd MUCH MORE!! Cost of Quality is the business foundation for your quality engineering, management and continuous improvement initiatives. By learning the skills provided in this class, you will effectively connect your knowledge and activities as a quality professional to the larger objectives of your company. Sign up today to start learning this critical skill!!...