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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Determine fixed costs
   • Fixed cost components are identified and classified into categories
   • Past records and business requirements are used to estimate fixed costs for next period
   • Fixed administrative and business operation overhead costs are calculated
   • Proportion of fixed costs to be included in retail rates is determined
2. Determine labour rate
   • Cost components of labour are identified and classified into categories
   • Average charge per hour for each identified category is calculated
   • Cost component of subcontractors used on jobs is determined and included in calculations for relevant jobs
   • Hourly labour rates are calculated according to workplace procedures
3. Determine variable costs
   • Variable costs are identified and calculated using data obtained from accounting records or supplier information
   • Required materials are estimated and recorded
4. Determine retail price of products and services
   • Previous sales figures and trends in turnover volume are reviewed
   • Competitors’ price for similar products or services is researched and reflected in final retail rate
   • Retail prices, margins and mark-ups for each product or service category are finalised according to workplace procedures
5. Determine fixed costs
   • Fixed cost components are identified and classified into categories
   • Past records and business requirements are used to estimate fixed costs for next period
   • Fixed administrative and business operation overhead costs are calculated
   • Proportion of fixed costs to be included in retail rates is determined
6. Determine labour rate
   • Cost components of labour are identified and classified into categories
   • Average charge per hour for each identified category is calculated
   • Cost component of subcontractors used on jobs is determined and included in calculations for relevant jobs
   • Hourly labour rates are calculated according to workplace procedures
7. Determine variable costs
   • Variable costs are identified and calculated using data obtained from accounting records or supplier information
   • Required materials are estimated and recorded
8. Determine retail price of products and services
   • Previous sales figures and trends in turnover volume are reviewed
   • Competitors’ price for similar products or services is researched and reflected in final retail rate
   • Retail prices, margins and mark-ups for each product or service category are finalised according to workplace procedures

Range Statement

This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below.

Hourly labour ratesmustinclude:	provision for: fixed costs on costs.
Previous sales figuresmust include:	wholesale cost of product or service retail price of product or service.

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Performance Evidence

Before competency can be determined, individuals must demonstrate they can perform the following according to the standards defined in this unit’s elements, performance criteria, range of conditions and foundation skills:

research and compare costs from external suppliers and competitors for:

two automotive workplace services

one consumable item

one automotive accessory product

calculate retail rates for above products and services.

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Knowledge Evidence

Individuals must be able to demonstrate knowledge of:

basic accounting principles and practices relating to costings:

Goods and Services Tax (GST) calculations

mark-up, break even and profit calculations

simple and compound interest

inflation effects

straight line depreciation

factors impacting on pricing products and services:

overheads, including accommodation costs, utilities, depreciation, insurances, licences and other business charges

labour costs, including on costs covering leave provision, superannuation, training and workers’ compensation

actual employee chargeable hours

sources of information on prices and costs:

supplier or component price lists

accounting records

labour or payroll records

purchasing records

repair orders and job cards

standard repair and warranty times

key features of workplace software and technology relating to extracting and manipulating data and information.

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