List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
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 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.
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 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.