SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply financial and business principles in a manufacturing environment 
SAQA US ID UNIT STANDARD TITLE
10606  Apply financial and business principles in a manufacturing environment 
ORIGINATOR
SGB Food 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 06 - Manufacturing, Engineering and Technology Manufacturing and Assembly 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
A person credited with this unit standard is able to:
  • Interpret financial statements and budgets,
  • Compile a budget and a cash flow forecast for a manufacturing environment,
  • Control financial expenditure,
  • Compile business report.

    This unit standard is intended for non-financial mangers who needs to compile a budget and cash flow forecast and ensuring that operational and manufacturing expenditures are in line with predetermined budgets and profit margins. The skills, knowledge and understanding demonstrated within this unit standard are essential for social and economic transformation and upliftment for any individual. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Compiling of a Budget.
  • Financial and accounting principles on NQF 4. 

  • UNIT STANDARD RANGE 
    The scope and context of this unit standard is for non-financial mangers who needs to compile a budget and cash flow forecast and ensuring that operational and manufacturing expenditures are in line with predetermined budgets and profit margins. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Interpret financial statements and budgets. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Key financial items on a financial statement expressed as a percentage or ratios are interpreted and explained according to financial principles. 
    ASSESSMENT CRITERION RANGE 
    Key financial items refer to profitability ratios, coverage ratios, liquidity ratios, activity ratios and financial ratios.
     

    ASSESSMENT CRITERION 2 
    2. Financial data in a financial sheet are compared with previous periods, industry averages and budgeted or forecasted data. 

    ASSESSMENT CRITERION 3 
    3. Projection of budget forecasts of income and expenditure, use statistical methods of relevant data, with adjustments for changing price levels, seasonal trends and any significant anticipated changes in circumstances which would affect the validity of the statistically derived calculations. 

    SPECIFIC OUTCOME 2 
    Compile a budget and a cash flow forecast for a manufacturing environment. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Prepare a budget for a manufacturing unit according to organisational budget policies, parameters, forecasts and in line with the department's strategic objectives. 

    ASSESSMENT CRITERION 2 
    2. Use statistical methods of relevant data and anticipated changes to compile a budget for a manufacturing environment. 
    ASSESSMENT CRITERION RANGE 
    Anticipated changes may refer to changing price levels, seasonal trends and any significant anticipated changes in circumstances which would affect the validity of the statistically derived calculations.
     

    ASSESSMENT CRITERION 3 
    3. The costs and net benefits of the budget are identified and explained according to budgeting principles. 

    ASSESSMENT CRITERION 4 
    4. Analysis of costs and benefits support draft budget proposals and state the net benefits which should be achieved from the expenditure. 

    ASSESSMENT CRITERION 5 
    5. Projection of budget forecasts of income and expenditure, use statistical methods of relevant data, with adjustments for changing price levels, seasonal trends and any significant anticipated changes in circumstances which would affect the validity of the statistically derived calculations. 

    ASSESSMENT CRITERION 6 
    6. Budgets to be in line with budget policies, parameters, forecasts and accord with the department's strategic objectives. 

    ASSESSMENT CRITERION 7 
    7. Analysis of costs and benefits support draft budget proposals and state the net benefits which should be achieved from the expenditure. 

    ASSESSMENT CRITERION 8 
    8. Budgetary discussions with staff are conducted in a manner which promotes goodwill and commitment to achieve budget outcomes. 

    SPECIFIC OUTCOME 3 
    Control financial expenditure. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Actual income and expenditure are checked against agreed budgets at regular, appropriate intervals. 

    ASSESSMENT CRITERION 2 
    2. Prompt corrective action is taken where necessary in response to actual or potential significant deviations from budget. 

    ASSESSMENT CRITERION 3 
    3. Any modifications to agreed budgets during the accounting period are consistent with agreed guidelines and are authorised. 

    ASSESSMENT CRITERION 4 
    4. Expenditure for activities is contained within agreed budgets. 

    ASSESSMENT CRITERION 5 
    5. Authorisation of expenditure is exercised within well-defined financial limits and in conformity with managerial delegations. 

    ASSESSMENT CRITERION 6 
    6. Assessment, interpretation and action on information relating to costs and resource utilisation ensure that costs are effectively under control. 

    ASSESSMENT CRITERION 7 
    7. Comparisons of actual expenditure and revenue results with budget projections is used to improve future budgetary practice. 

    ASSESSMENT CRITERION 8 
    8. Budgetary discussions with staff are conducted in a manner which promotes goodwill and commitment to achieve budget outcomes. 

    SPECIFIC OUTCOME 4 
    Compile a business report. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Financial reports are prepared according to organisational and financial parameters. 
    ASSESSMENT CRITERION RANGE 
    Parameters must include the following headings: title, index, objectives, executive summary, body and conclusion or recommendations.
     

    ASSESSMENT CRITERION 2 
    2. Information in financial reports is constructed in an audience specific, accurate and concise manner. 

    ASSESSMENT CRITERION 3 
    3. Reports are filed and maintained according to the document quality control system. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Internal moderation.
  • External moderation.
  • An assessor, accredited by the relevant ETQA, will assess the learner`s competency.
  • Assessment procedures will be supplied by the ETQA in alignment with NSB requirements.
  • All assessment activities must be fair, so that all candidates have equal opportunities. Activities must be free of gender, ethnic or other bias.
  • Questions and answers to determine theoretical knowledge are expected.
  • Examination of an assessment portfolio.
  • Reporting skills are demonstrated by effective communication, using verbal (language) and/or writing skills.
  • Direct observation in simulated or actual work conditions.
  • Practical demonstration of main activity(s) reflected in the title. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Embedded knowledge is reflected within the assessment criteria of each specific outcome. 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems in which response displays that responsible decisions, using critical and creative thinking, have been made.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organisation or community.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one`s activities responsibly and effectively.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively by using mathematical and/or language skills in the modes of oral and/or written presentations.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility towards the environment and health of others.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems by recognising that problem solving contexts do not exist in isolation.

    Evident in all Specific Outcomes. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Contribute to the full personal development of each learner and the social and economic development of the society at large.

    Evident in all Specific Outcomes. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  49532   National Diploma: Clear Fermented Beverage Processing: Brewing  Level 6  NQF Level 06  Reregistered  2023-06-30  FOODBEV 
    Fundamental  21847   National Diploma: Manufacturing Management: Food and Beverage  Level 6  NQF Level 06  Reregistered  2023-06-30  FOODBEV 
    Elective  48886   National Certificate: Business Advising  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered" 
    2010-11-11  Was SERVICES until Last Date for Achievement 
    Elective  79886   National Certificate: Business Advising  Level 5  NQF Level 05  Reregistered  2023-06-30  SERVICES 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.