NTISthis.com

Evidence Guide: AURA454516A - Determine retail rates for work

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

AURA454516A - Determine retail rates for work

What evidence can you provide to prove your understanding of each of the following citeria?

Determine fixed costs

  1. Identify components of fixed costs
  2. Use historical records and business knowledge to estimate fixed costs for next period
  3. Calculate administrative and business operation overhead costs
  4. Allocate proportion of fixed cost to be included in labour rate
Identify components of fixed costs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use historical records and business knowledge to estimate fixed costs for next period

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate administrative and business operation overhead costs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Allocate proportion of fixed cost to be included in labour rate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine labour rate

  1. Identify cost components of labour rate
  2. Using historical records identify average chargeable hours of each category of staff
  3. Calculate subcontractor cost component of jobs
  4. Calculate applicable hourly retail rate for labour, including provision for fixed costs
Identify cost components of labour rate

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Using historical records identify average chargeable hours of each category of staff

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate subcontractor cost component of jobs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate applicable hourly retail rate for labour, including provision for fixed costs

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine variable cost

  1. Identify components of variable cost for job
  2. Estimate and record materials required for the job
  3. Use accounting records and details of job undertaken to calculate variable cost
Identify components of variable cost for job

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate and record materials required for the job

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use accounting records and details of job undertaken to calculate variable cost

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine retail price of goods for resale

  1. Research local market price for items
  2. Estimate turnover volume of items
  3. Calculate margins and mark-ups for each category of goods
  4. Calculate effect of various discounts, loss leaders and specials on items based on retail price, volume and overall business flow-on
  5. Calculate effect of high pricing strategy on some items
  6. Monitor effects of price changes on business levels and profitability
Research local market price for items

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Estimate turnover volume of items

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate margins and mark-ups for each category of goods

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate effect of various discounts, loss leaders and specials on items based on retail price, volume and overall business flow-on

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate effect of high pricing strategy on some items

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor effects of price changes on business levels and profitability

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Calculate cost for a range of retail service and repair jobs, including fixed, variable and component pricing.

Determine effect of price changes on overall business profitability.

Gathering cost estimates from external service providers and documenting quotations.

Context of and specific resources for assessment

Accounts payable and cash disbursement records, payroll records, equipment cost and asset register, pricing impact charts, stock turnover records, calculator or computer.

Method of assessment

Practical assessments:

determine hourly charge-out rate for classes of labour using proportion of fixed, variable and labour cost

determine on-cost for parts and components

determine effect of change in price on business profitability.

Guidance information for assessment

Required Skills and Knowledge

Required skills

collect, organise and understand information related to determining retail rates

communicate ideas and information to establish appropriate retail rates for work

plan and organise activities to comply with requirements for determining business retail rates

work with others and in a team to allocate charges

use mathematical ideas and techniques to support the business operation

solve problems to establish business

use workplace technology to optimise performance

Required knowledge

basic mathematical concepts, addition, subtraction, percentages and fractions

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that 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) may also be included.

Calculations

Calculation will include:

overheads may be calculated for a specific job or be a constant component based on historical records and projections

overheads will include accommodation costs, utilities, depreciation, insurance, licence and other business charges

labour costs will include on-costs, such as leave provision, superannuation, training and workers' compensation

chargeable hours/productive hours based on total hours worked less acknowledged non-chargeable hours

Work requirements

Work requirements may include:

written and verbal communication

sourcing and costing parts and consumables

estimating costs

documentation

specific requirements

External service providers

External service providers may be:

other departments

specialist businesses

Resources

Resources may include:

enterprise stationery, telephone and appropriate forms/business documents

repair order and job cards

component price lists

accounting records

purchasing records

computer, calculator and software

standard repair times

Information/ documents

Sources of information/documents may include:

manufacturer/component supplier specifications

enterprise operating procedures

customer requirements

state/territory/industry OHS legislation

industry/workplace codes of practice