Unit of competency
Modification History
Release |
Comment |
Release 1 |
New unit of competency. |
Application
This unit describes the performance outcomes required to calculate fixed and variable costs to determine retail labour rates and cost of products and services for sale in automotive service and repair workplaces.
It applies to those working in administrative and sales areas of an automotive workplace who are required to calculate costs of products and services to ensure business profitability.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Competency Field
Common
Unit Sector
Administration
Elements and Performance Criteria
Elements Elements describe the essential outcomes. |
Performance Criteria Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold and italicised text is used, further information is detailed in the range of conditions section. |
1. Determine fixed costs |
1.1 Fixed cost components are identified and classified into categories 1.2 Past records and business requirements are used to estimate fixed costs for next period 1.3 Fixed administrative and business operation overhead costs are calculated 1.4 Proportion of fixed costs to be included in retail rates is determined |
2. Determine labour rate |
2.1 Cost components of labour are identified and classified into categories 2.2 Average charge per hour for each identified category is calculated 2.3 Cost component of subcontractors used on jobs is determined and included in calculations for relevant jobs 2.4 Hourly labour rates are calculated according to workplace procedures |
3. Determine variable costs |
3.1 Variable costs are identified and calculated using data obtained from accounting records or supplier information 3.2 Required materials are estimated and recorded |
4. Determine retail price of products and services |
4.1 Previous sales figures and trends in turnover volume are reviewed 4.2 Competitors’ price for similar products or services is researched and reflected in final retail rate 4.3 Retail prices, margins and mark-ups for each product or service category are finalised according to workplace procedures |
Foundation Skills
This section describes those language, literacy, numeracy and employment skills that are essential to performance and are not explicit in the performance criteria.
Skills |
Description |
Reading skills to: |
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Writing skills to: |
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Numeracy skills to: |
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Digital literacy skills to: |
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Self-management skills to: |
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Problem solving skills to: |
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Range of Conditions
This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below.
Hourly labour rates must include: |
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Previous sales figures must include: |
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Unit Mapping Information
Equivalent to AURAAA4002 Determine retail rates for work
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=b4278d82-d487-4070-a8c4-78045ec695b1