Do students need to take both Cost Accounting 1&2 to be eligible to take the CPA Exam?

Dunwoody CPA

You definitely should take Cost Accounting I and I recommend Cost II. You will need this knowledge for the BEC portion of the CPA exam. Even if not required to take Cost II, I would still take it as an elective over Managerial Accounting since you will learn most of what you need in Cost anyway.

Cost Accounting actually operates within Management Accounting. Management Accounting evolved from cost Accounting as businesses became more complex and diversified, Thus, more comprehensive data was needed in order to help management make decisions, rather than the typical Product Costing reports. Management Accountants are also involved in other accounting related functions such as Long Term Planning, Budgeting and Forecasting. Again, cost accounting data is used to as part of the process; however, other analyses are also part of the Management Accountant’s role. Cost I&II and Managerial were all 3-credit courses where I went to university.

Further, if you haven’t taken them already, you will have to take Micro & Macro Economics and *maybe* another Economics course. This is usually the case for a Liberal Arts degree and definitely the case for most College’s of Business. Be sure to ask around and read the Economic course descriptions as you may gain cost/managerial knowledge with the Economics elective and avoid sitting through a class that does not necessarily further you along.
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**Most states now require 150 semester hours of university education to sit for the CPA Exam. This does not mean you need a Master’s Degree but you will need your undergrad and probably about 36 hours more. To find out exactly, visit your state Board of Accountancy’s web site to determine state-specific requirements. (See url).
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Following is my experience and opinions only. My state did not require 36 extra hours and I sat for the exam with a BBA Accounting and I took a review course. I passed three of the four parts of the CPA Exam the first time and my weak area the second. Most of my peers passed the exam the first time and did not have the extra 36 hours. The exam has not changed that much so you will pass
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The CPA Exam is a two-day four-part exam:
EXAMINATION STRUCTURE

The four parts of the examination are:
1-Auditing & Attestation
Plan the engagement and enter agreement. (22%-28%).
Evaluate Internal Control. (12%-18%).
Obtain and Document Evidence. (32%-38%).
Review the engagement to provide reasonable assurance that objectives are achieved and evaluate information obtained to reach and to document engagement conclusions (8%-12%%).
Prepare communications (reports and letters) to satisfy engagement objectives (12%-18%).

2-Financial Accounting & Reporting (business enterprises, not-for-profit organizations, and governmental entities)
Concepts and standards for financial statements (17%-23%).
Typical items in financial statements in conformity with generally accepted accounting principles (27%-33%).
Specific types of transactions and events in financial statements (27%-33%).
Governmental Entities. (8%-12%).
Nongovernmental not-for-profit organizations. (8%-12%).

3-Regulation (professional responsibilities, business law, and taxation)
Ethics and professional and legal responsibilities (15%-20%).
Business Law (20%-25%).
Federal tax procedures (8%-12%).
Federal taxation – property transactions (8%-12%).
Federal taxation – individuals (12%-18%).
Federal taxation – entities (22%-28%).

4-Business Environment & Concepts
Business Structure (17%-23%).
Economics (8%-12%).
Financial Management (17%-23%).
Information Technology (22%-28%).
Planning and Measurement (22%-28%).
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Good luck?