Application
This unit requires the application of skills and knowledge required to prepare and analyse management accounting information. The unit encompasses gathering and recording operating costs and data, analysing data, preparing cost reports and budgets and analysing cost reports and budgets. The unit has application to those job positions such as accountants and analysts.
This unit requires the application of skills and knowledge required to prepare and analyse management accounting information. The unit encompasses gathering and recording operating costs and data, analysing data, preparing cost reports and budgets and analysing cost reports and budgets. The unit has application to those job positions such as accountants and analysts.
Prerequisites
Not applicable.
Elements and Performance Criteria
Elements and Performance Criteria | |||
Element | Performance Criteria | ||
1 | Gather and record operating and cost data | 1.1 | Systems to generate cost and operating data are established |
1.2 | Systems to determine cost and operating standards are established | ||
1.3 | Data is systematically coded, classified and checked for accuracy and reliability in accordance with organisational policies and procedures | ||
2 | Analyse data | 2.1 | Costs are assigned to specified products, services, projects, organisational units, customers, distribution channel, market segments and other cost objects |
2.2 | Data is reconciled to ensure calculations are accurate and comply with organisational procedures | ||
2.3 | Variance analysis is used to review the effectiveness of the cost assignment process | ||
2.4 | Interpretation of revenues and costs is supported by valid analysis and is consistent with the organisation's objectives | ||
3 | Prepare cost reports and budgets | 3.1 | Cost information and organisational activities advice is sought from all sections of the organization when formulating reports and budgets |
3.2 | Structure and format of reports and budgets are clear and conform to routine and ad hoc management information requirements | ||
3.3 | Comprehensive variances against budget and standards are identified, and prioritised for review and decision making | ||
3.4 | Reports are error free, comprehensive and comply with routine and ad hoc management requirements and organisational practices | ||
4 | Analyse cost reports and budgets | 4.1 | Variances against budget are interpreted and discussed in consultation with relevant sections of the organisation |
4.2 | Outcomes from variance reviews are assessed and recommendations made for further actions where required, including revisions to cost and activity standards | ||
4.3 | Cost and process information is reviewed for value adding and non-value adding activities, and recommendations made for further actions | ||
4.4 | Reports and budgets on specified products, services, projects, organisational units, customers, market segments and other cost objects are assessed against the organisation's objectives, and recommendations made for further actions |
Required Skills
REQUIRED KNOWLEDGE&SKILLS |
Knowledge requirements include: principles of costing organisational operating procedures common routines for recording and storing data principles of costing system integrity methods of data protection including back ups and security principles and practices of budgetary control (eg double entry bookkeeping and accrual accounting) ethical considerations for the handling of financial and operating information (eg conflict of interests, confidentiality, disclosure requirements) |
Skills requirements include: interpersonal skills and communication skills (eg liaising, listening, consulting) information technology used for the set up and analysis of spreadsheets estimating, forecasting and analysis skills reading and interpreting financial statements and reports writing skills for reports and recommendations numeracy for financial calculations and analysis recording, gathering and classifying financial information |
Evidence Required
EVIDENCE GUIDE | |
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace. | |
Overview of assessment requirements | |
To achieve competency in this unit, a person must be able to demonstrate: knowledge of standards accounting techniques and principles ability to gather and record operating and cost data ability to analyse data ability to prepare cost reports and budgets ability to analyse cost reports and budgets | |
Critical aspects of evidence | |
Evidence required for demonstration of consistent performance: | Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment. |
Delivery/assessment relationship to other units: | Prerequisite units: FNSACCT507B Provide management accounting information. |
Assessment requirements | |
Method of assessment: | For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance. Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required. |
Context of assessment: | Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability. Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements. |
Resources required for assessment: | Assessment of this unit of competence requires access to suitable resources to demonstrate competence. Assessment instruments, including personal planner and assessment record book. Access to registered provider of assessment services. |
Range Statement
The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance. The following variables may be present with training and assessment depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement. | |
Systems may include: | standard costing activity-based costing process costing direct and absorption costing operations costing joint and by-products costing |
Data may include: | inventory, materials and finished product records marketing, distribution and customer records consumables records records of purchases and associated costs sales information labour utilisation records materials used payroll records manufacturing and general overhead costs service charge out rates marketing, distribution, logistics and other support areas activity records standards for labour, materials and overheads usage and costs |
Cost assignments may include: | direct and indirect costs fixed and variable costs absorption costs labour, materials and overheads manufacturing costs service costs activity-based costs project costs product, service, market segment, distribution channel and customer costs |
Reports and budgets may include: | production reports and budgets materials purchases materials usage labour usage manufacturing overhead costing budgets relationship with master budgets activity-based reports and budgets project reports and budgets |
Management information requirements may include: | costs and profitability of products and services and business units costs and profitability of market segments, distribution channels and customers causes of and reasons for variances identification of value adding and non-value adding activities improvement of cost and resource management |
Reports may include: | manufacturing statements variance analysis reports job, process and service profitability reports cost volume profit report manufacturing statements job cost records spreadsheets service cost analysis project cost analysis market segment, distribution channel and customer cost analysis performance reports |
Sectors
Not applicable.
Employability Skills
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Licensing Information
Not applicable.