This Dairy Cost Accountant job description sets out the main duties, qualifications, skills and measures of success for the role, which is also known as Manufacturing Accountant, Product Costing Accountant, Site Accountant or Plant Accountant. Download it free as a Word or PDF template and adapt it for your own vacancy.
| Job title | Dairy Cost Accountant |
| Also known as | Manufacturing Accountant, Product Costing Accountant, Site Accountant, Plant Accountant |
| Department | Finance, legal and corporate |
| Reports to | Site Finance Manager or Financial Controller |
| Direct reports | None |
What does a Dairy Cost Accountant do?
Owns product costing and inventory accounting at a dairy manufacturing site. Sets and maintains standard costs and bills of materials, tracks milk solids yields, and explains variances so managers can control cost and stock.
Dairy Cost Accountant duties and responsibilities
Standard costing
- Set standard costs for raw milk, ingredients, packaging, labour, energy and overheads
- Review standards each year and when prices or processes change
- Allocate milk cost between co-products such as cream, skim milk and whey on an agreed basis
- Cost new products, pack formats and trials for sales and development teams
Bills of materials and yields
- Maintain accurate bills of materials and routings in the ERP system
- Track milk fat and protein recovery against standard for each product
- Prepare monthly milk solids mass balances for the site
- Investigate yield losses with production and quality teams
- Update bills of materials when recipes, packaging or processes change
Variance analysis
- Calculate and explain price, usage, yield and efficiency variances each month
- Report variances by line, product and cost centre to operations managers
- Identify root causes of adverse variances and track corrective actions
- Quantify the cost of waste, rework, downtime and product downgrades
Inventory
- Run stock counts and cycle counts and reconcile results to the system
- Value raw materials, work in progress and finished goods correctly
- Track maturing cheese and other work in progress and value it correctly
- Review slow-moving, short-dated and downgraded stock and recommend provisions
- Check that goods receipts, production orders and despatches post accurately
Month-end and controls
- Prepare cost of sales, inventory and production cost journals at month-end
- Reconcile inventory and work in progress accounts to the general ledger
- Maintain costing controls and audit trails for the external audit
- Improve costing data quality and reporting in the ERP system
Dairy Cost Accountant qualifications and experience
Essential
- Part or fully qualified with a recognised accountancy body
- Experience in cost accounting in food, dairy or process manufacturing
- Working knowledge of standard costing, bills of materials and variance analysis
- Experience of inventory accounting and stock counts
- Strong spreadsheet skills and experience of an ERP system
Desirable
- Experience of milk solids or mass balance reporting
- Knowledge of dairy processes such as separation, cheesemaking or drying
- Experience of activity-based costing or overhead allocation
Skills and attributes
- Attention to detail
- Analytical problem solving
- Working with production teams on the shop floor
- Clear explanation of cost information
- Data handling and spreadsheets
- Persistence in investigating differences
- Time management at month-end
How success is measured
- Standard costs reviewed and updated on schedule
- Inventory accuracy at stock counts
- Variances reported and explained within the month-end timetable
- Milk solids yields and losses reported against standard
- Bill of materials accuracy
- Value of unexplained stock adjustments
Working conditions and safety
Site-based, split between the office and production areas, where PPE and hygiene rules apply. Peak workload at month-end and during stock counts.
- Lead by example on health, safety, food safety and animal welfare
- Uphold the code of conduct and all legal and compliance requirements
- Raise concerns and report incidents promptly
Dairy Cost Accountant interview questions
Use these questions to assess candidates for a Dairy Cost Accountant role. Each one includes what a good answer shows.
- How do you set a standard cost for a new cheese product?
What a good answer shows: Builds it from milk solids, yield, ingredients, packaging, labour, energy, overheads and maturation, agreed with operations. - How do you allocate raw milk cost between cream, skim milk and whey?
What a good answer shows: Explains an agreed basis such as solids content or relative value, applied consistently and understood by management. - How would you analyse a yield variance on a milk powder line?
What a good answer shows: Separates price, usage and yield effects, checks the mass balance and data, and works with production on causes. - How do you keep bills of materials accurate in the ERP system?
What a good answer shows: Uses change control with production and development, compares actual usage with the bill, and corrects errors promptly. - The monthly mass balance shows milk fat losses above standard. What do you do?
What a good answer shows: Checks measurements and data first, reviews process steps with production, quantifies the cost and tracks actions. - A stock count shows a large finished goods difference. How do you investigate?
What a good answer shows: Checks count accuracy, cut-off, production and despatch postings, explains the difference and fixes the cause. - How do you value slow-moving or downgraded dairy stock?
What a good answer shows: Reviews ageing, shelf life and achievable sale value, applies policy consistently and recommends provisions with evidence. - What controls do you put around stock counts?
What a good answer shows: Uses planned counts, independent counters, cut-off controls, recounts of large differences and documented reconciliations. - How do you get production managers to take ownership of variances?
What a good answer shows: Gives clear, timely reports in their language, focuses on causes they control and follows up together. - Describe a time you challenged an operations colleague about their data.
What a good answer shows: Shows tact and evidence, keeps the relationship intact and reaches an agreed, accurate outcome.
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Frequently asked questions
Owns product costing and inventory accounting at a dairy manufacturing site. Sets and maintains standard costs and bills of materials, tracks milk solids yields, and explains variances so managers can control cost and stock.
Employers usually look for: part or fully qualified with a recognised accountancy body; experience in cost accounting in food, dairy or process manufacturing; working knowledge of standard costing, bills of materials and variance analysis.
A Dairy Cost Accountant usually reports to the Site Finance Manager or Financial Controller.
Yes. Download the free Word template, add your location, contract and salary details, and adapt the duties to your site. You can then advertise the role on Dairy Jobs.
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