FNSACC613
Prepare and analyse management accounting information


Application

This unit describes the skills and knowledge required to gather, record and analyse operating costs and data, prepare cost reports and budgets, and calculate the costs of products, services and other organisational activities.

It applies to individuals who use specialised knowledge and techniques to consolidate and report on complex information and make recommendations relating to strategic organisational activity.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Gather and record operating and cost data

1.1 Establish systems to generate operating and cost data, and determine cost and operating standards

1.2 Systematically code, classify and check data for accuracy and reliability in accordance with organisational policy and procedures

2. Analyse data and assign costs

2.1 Analyse costs to identify cost behaviour characteristics

2.2 Assign costs to specified cost objects, and reconcile data to ensure calculations are accurate and comply with organisational procedures

2.3 Ensure interpretation of revenues and costs is supported by valid analysis and is consistent with organisation’s objectives

3. Prepare cost reports and budgets

3.1 Obtain cost information and relevant advice from all sections of organisation when formulating reports and budgets

3.2 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

4.1 Calculate variances against budget and standards, and prioritise for review and decision making

4.2 Interpret and discuss variances against budget in consultation with relevant personnel in organisation

4.3 Assess outcomes from variance reviews to make recommendations for further actions where required, including revisions to cost and activity standards

4.4 Review cost and process information for value adding and non-value adding activities, and make recommendations for further actions

4.5 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

4.6 Use comprehensive variance analysis to review effectiveness of cost assignment processes

Evidence of Performance

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.


Evidence of Knowledge

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.


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumables

an integrated financial software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.


Foundation Skills

Skill

Performance Criteria

Description

Reading

1.2, 2.1, 3.1-3.3, 4.2-4.4

Critically analyses complex information to identify, classify and compare key aspects required for reports and recommendations

Proofreads and checks for accuracy and completeness of data and information

Writing

1.1, 1.2, 3.1, 3.2, 4.2-4.6

Prepares logically structured and sequenced reports that use clear language, concepts and terminology, and justify proposed recommendations

Oral Communication

3.1, 4.2

Participates in verbal exchanges using active listening and questioning to elicit, convey and clarify information with a range of personnel

Numeracy

1.1, 1.2, 2.1-2.3, 4.1-4.6

Performs mathematical calculations and uses a range of mathematical analysis techniques to consolidate and compare financial data

Navigate the world of work

1.2, 2.2, 2.3, 3.2, 4.4

Recognises and follows relevant organisational policy, procedures and objectives

Interact with others

3.1, 4.2-4.5

Selects and uses appropriate conventions and protocols when communicating with colleagues

Uses collaborative techniques to liaise with others and elicit and share information

Get the work done

1.1, 1.2, 2.1-2.3, 3.1-3.2, 4.1-4.6

Takes responsibility for planning, sequencing and prioritising complex tasks and own workload for efficiency and effective outcomes

Plans and implements new systems and processes with strategic implications for the organisation

Uses systematic analytical problem-solving processes in complex, routine and non-routine situations, gathering information and identifying and evaluating options against criteria

Evaluates effectiveness of systems and processes to inform decisions on whether improvements are required

Uses digital technologies to access, organise and analyse complex data


Sectors

Accounting