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: 

Evaluate and advise on costing and cost management information for material, labour and overheads 
SAQA US ID UNIT STANDARD TITLE
13067  Evaluate and advise on costing and cost management information for material, labour and overheads 
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  10 
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 able to evaluate and advise on the cost management of overheads, labour and materials for the purposes of financial management. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Unit standard, Record, analyse and prepare cost information, NQF level 5.
  • Unit standards for computer literacy at NQF level 4. 

  • UNIT STANDARD RANGE 
    Material, labour and overheads 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Evaluate and advise on the cost management of material. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The recording material costs are evaluated and advised on per costing principles. 
    ASSESSMENT CRITERION RANGE 
    direct and related
     

    ASSESSMENT CRITERION 2 
    2. The flow of costs, directly and indirectly related to materials, are allocated and evaluated in respect of raw materials, work-in-progress and finished products. 

    ASSESSMENT CRITERION 3 
    3. The bases of assigning costs are evaluated and advised on per accepted costing practices. 

    ASSESSMENT CRITERION 4 
    4. The appropriateness of the different bases used to assign costs is evaluated as per the explanations in the relevant costing documentation. 
    ASSESSMENT CRITERION RANGE 
    Including FIFO; weighted average, standard cost, LIFO
     

    ASSESSMENT CRITERION 5 
    5. The costs to be assigned to objects are identified and calculated using generally accepted costing methods. 
    ASSESSMENT CRITERION RANGE 
    Including FIFO; weighted average, standard cost, LIFO
     

    ASSESSMENT CRITERION 6 
    6. Inventory systems are evaluated and advised on per generally accepted costing principles. 

    ASSESSMENT CRITERION 7 
    7. The functioning of the different inventory systems are commented on in accordance with the accepted costing principles. 
    ASSESSMENT CRITERION RANGE 
    Including Conventional; Economic order quantity, Material requirement planning; and JIT
     

    ASSESSMENT CRITERION 8 
    8. The most economic ordering quantity and re-order levels are recommended, after having taken safety stock and lead times into account, based on the principles advocated by the Economic Order Quantity method of inventory management. 

    SPECIFIC OUTCOME 2 
    Evaluate and advise on the cost management of labour. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The cost of labour per the payroll and the labour costs for stock valuation purposes are differentiated between according to the accepted costing definitions. 

    ASSESSMENT CRITERION 2 
    2. Labour related costs are recorded and analysed in line with accepted costing procedures. 

    ASSESSMENT CRITERION 3 
    3. The bases of assigning costs is evaluated and advised on according to accepted costing practices. 

    ASSESSMENT CRITERION 4 
    4. The appropriateness of assigning labour related costs is evaluated according to accepted costing regulations. 
    ASSESSMENT CRITERION RANGE 
    Including time, place
     

    ASSESSMENT CRITERION 5 
    5. The amount of the labour related costs to be assigned to products is identified and calculated per recognised costing methods. 
    ASSESSMENT CRITERION RANGE 
    Including time and place
     

    ASSESSMENT CRITERION 6 
    6. The management of labour costs is advised on in line with the principles of costing. 

    ASSESSMENT CRITERION 7 
    7. The importance of managing labour related costs and the impact thereof on profitability is commented on in line with the principles of costing. 

    ASSESSMENT CRITERION 8 
    8. The learning and experience costs are evaluated using the learning curve and the effects thereof on products are analysed and advised on in line with the principles of costing. 

    ASSESSMENT CRITERION 9 
    9. Situations where the learning/experience curve effects are applicable can be identified in accordance with accepted costing principles. 

    SPECIFIC OUTCOME 3 
    Evaluate and advise on overhead costs. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Overhead costs are identified and recorded per recognised costing methods. 

    ASSESSMENT CRITERION 2 
    2. Arguments concerning the absorption and variable costing systems are evaluated in accordance with costing principles. 

    ASSESSMENT CRITERION 3 
    3. Income statements are prepared and compared and reasons for the differences between them are suggested in line with the principles of costing. 
    ASSESSMENT CRITERION RANGE 
    variable and absorption costing systems
     

    ASSESSMENT CRITERION 4 
    4. An appropriate basis for assigning overheads to objects is selected, evaluated, and justified per generally accepted costing principles. 
    ASSESSMENT CRITERION RANGE 
    Including the use of a departmental overhead absorption rate, a global (blanket) overhead absorption rate, a predetermined overhead absorption rate and an actual overhead absorption rate
     

    ASSESSMENT CRITERION 5 
    5. The over/under recovery of overhead costs is calculated and the most appropriate accounting treatment therefore is recommended. 

    ASSESSMENT CRITERION 6 
    6. The conventional bases of allocating overhead costs in the new manufacturing environment (NME) are compared to activity based costing in accordance with the principles of costing. 
    ASSESSMENT CRITERION RANGE 
    With regard to the concepts of cost drivers and activity-based costing
     

    ASSESSMENT CRITERION 7 
    7. The costs to be assigned to the various cost objects, based on activities, are identified and calculated using methods generally accepted in the costing environment. 


    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:
  • Cost management: material costs, assigning costs, inventory systems, labour costs, learning and experience costs, overhead costs, assigning overheads to objects
  • Relevant computer software systems

    Legal Requirements
  • Generally accepted accounting practice
  • Relevant financial legislation

    Terminology
  • FIFO - First in first out
  • LIFO - Last in first out
  • JIT - Just in time 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Solve problems 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team/group 

    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, mathematics and language skills in the modes of oral and written presentations 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically 

    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.
     
    1. Guarantee Trust Corporate Support Services (Pty)Ltd 



    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.