Google Links

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

Elements and Performance Criteria

1. Gather and record operating and cost data
   • Establish systems to generate operating and cost data, and determine cost and operating standards
   • Systematically code, classify and check data for accuracy and reliability in accordance with organisational policy and procedures
2. Analyse data and assign costs
   • Analyse costs to identify cost behaviour characteristics
   • Assign costs to specified cost objects, and reconcile data to ensure calculations are accurate and comply with organisational procedures
   • Ensure interpretation of revenues and costs is supported by valid analysis and is consistent with organisation’s objectives
3. Prepare cost reports and budgets
   • Obtain cost information and relevant advice from all sections of organisation when formulating reports and budgets
   • Ensure structure and format of reports and budgets are clear, comprehensive and comply with management information requirements
4. Analyse cost reports and budgets, and review costing system integrity
   • Calculate variances against budget and standards, and prioritise for review and decision making
   • Interpret and discuss variances against budget in consultation with relevant personnel in organisation
   • Assess outcomes from variance reviews to make recommendations for further actions where required, including revisions to cost and activity standards
   • Review cost and process information for value adding and non-value adding activities, and make recommendations for further actions
   • Assess cost reports and budgets on specified products, services, projects, organisational units, customers, market segments and other cost objects against organisation’s objectives, and make recommendations for further actions
   • Use comprehensive variance analysis to review effectiveness of cost assignment processes

Performance Evidence

Evidence of the of the ability to:

gather and record operating and cost data in accordance with organisational policy and procedures

determine cost and operating standards for a costing system

analyse data and assign costs to comply with organisational procedures

prepare a range of cost reports and budgets to meet management information requirements

analyse variances against budget and standards

recommend changes to cost and activity standards

recommend further actions required resulting from review process

review integrity of costing systems.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

---

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

identify and describe cost behaviour characteristics for the different cost elements of a product or service

describe the principles of double-entry bookkeeping and accrual-based accounting

identify and discuss the key features of organisational policy and procedures as they apply to costing systems

identify and explain the key principles and practices of budget preparation

discuss the relationship between variance analysis and costing system integrity

explain the key processes and procedures for recording and securely storing data.

---