This unit describes the skills and knowledge to identify cost components in work practices and determine, in general terms, the cost impacts of alternative actions. The unit applies to assessing the relative costs of the alternatives and using this as one of the key factors in making decisions. Decisions are made within the scope of the employee's authority and according to procedures. Typical decisions include those that contribute to the efficient organisation of own work and the improvement of production time and cycle times. Employees are required to use problem solving to identify cost factors and cost implications of own work and self-management to apply cost-effective practices.This unit applies to an individual who is required to contribute to, and be involved in, the assessment of cost factors in their work. This may be done individually or in a team environment.No licensing or certification requirements exist at the time of publication. Relevant legislation, industry standards and codes of practice within Australia must be applied.