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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Design, evaluate and apply cost management systems and techniques in the business environment 
SAQA US ID UNIT STANDARD TITLE
12945  Design, evaluate and apply cost management systems and techniques in the business environment 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6  12 
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 
People credited with this unit standard are generally found within the managerial accounting and financial management field. On successful completion of the unit standard, people will be able to design, evaluate and apply cost management systems and techniques in a business environment. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Unit standard, Contribute to the management of costs and enhancement of value, NQF level 5
  • Unit standard, Provide information on costing and cost management, NQF level 6 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Design and evaluate costing systems appropriate for various types of organisations and processes. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Cost management systems are designed on the basis of organisational resources. 
    ASSESSMENT CRITERION RANGE 
    Material, Labour, Overheads
     

    ASSESSMENT CRITERION 2 
    2. Decisions relating to pricing, capacity, product line and operation are made using sound judgement techniques. 

    ASSESSMENT CRITERION 3 
    3. Standard costing systems are designed with due consideration for variance analysis and reconciliation of budget to actual. 

    ASSESSMENT CRITERION 4 
    4. Costing systems are evaluated against organisational and industry standards and reports with recommendations are provided to management. 

    SPECIFIC OUTCOME 2 
    Calculate, record and report cost management information. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Costs are calculated and recorded for materials. 
    ASSESSMENT CRITERION RANGE 
    Direct and related material costs
     

    ASSESSMENT CRITERION 2 
    2. Reporting on materials cost management includes all essential aspects. 
    ASSESSMENT CRITERION RANGE 
    FIFO, Weighted average, Standard cost, LIFO
     

    ASSESSMENT CRITERION 3 
    3. Costs are calculated and recorded for labour. 

    ASSESSMENT CRITERION 4 
    4. Reporting on labour cost management includes all essential aspects. 
    ASSESSMENT CRITERION RANGE 
    Time, Piece, management of labour costs, Learning and experience costs
     

    ASSESSMENT CRITERION 5 
    5. Costs are calculated and recorded for overheads in that overhead costs are accurately assigned to cost objects. 

    ASSESSMENT CRITERION 6 
    6. Reporting on overhead cost management includes all essential aspects. 
    ASSESSMENT CRITERION RANGE 
    Conventional absorption bases, Cost drivers and activity-based costing
     

    SPECIFIC OUTCOME 3 
    Apply cost management techniques. 
    OUTCOME RANGE 
    Advanced management accounting techniques, Costing and cost management (materials, labour, overheads) 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Cost management techniques are selected and applied in accordance with the needs of the client. 

    ASSESSMENT CRITERION 2 
    2. The application of cost management techniques contributes to the achievement of business strategic objectives. 

    ASSESSMENT CRITERION 3 
    3. Cost management reports are utilised as a basis for short and long-term decision making in the organisation. 
    ASSESSMENT CRITERION RANGE 
    Pricing, capacity utilisation, Product line decisions, Operational decisions
     

    ASSESSMENT CRITERION 4 
    4. Advanced management accounting techniques are applied on an ongoing basis. 
    ASSESSMENT CRITERION RANGE 
    Activity-based costing, Total quality management, Benchmarking, Target costing, JIT, MRP, Throughput accounting
     


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this unit standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative assessment by a registered assessor.

    Moderation activity comments by SGB's, organisations and individuals may be forwarded to NSB03. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:
  • Costing systems
  • Cost management techniques (Materials, Labour, Overheads)
  • Advanced management accounting techniques

    TERMINOLOGY
  • FIFO - First In First Out
  • LIFO - Last In Last Out
  • JIT - Just In Time
  • MRP - Materials Requirements Planning 

  • 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 responses display that responsible decisions using critical and creative thinking have been made. 

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

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

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

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills in the modes of oral and written presentations. 

    UNIT STANDARD CCFO SCIENCE 
    Demonstrate an understanding of the world as a set of related systems. 

    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
    Elective  36213   National Diploma: Technical Financial Accounting  Level 5  NQF Level 05  Reregistered  2023-06-30  FASSET 


    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.