Elements and Performance Criteria

The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Unit scope
Work involves the estimating and total costing of automotive services (repair, maintenance and/or modification) for significant and non-routine activities involving a number of tradespersons and for which costing schedules are not available
Unit context
OH&S requirements include legislation, vehicle industry regulations, safety management systems, hazardous substances and dangerous goods code and safe operating procedures
Work is carried out in accordance with legislative obligations, Australian Design Rules, environmental legislation, health regulations, manual handling procedures and organisation insurance requirements
Work requires individuals to demonstrate research, analytical, judgement and problem-solving skills in the diagnosis of faults
Overhead costs
Overheads may be calculated for a specific service or be a constant component based on historical records and may include such costs as rental/lease costs, utilities, non-production resources, depreciation of plant and equipment, warehousing margins, warehousing costs, insurance and other costs incurred by doing business


Information and procedures
Enterprise or equivalent financial management policy and procedures
Enterprise or equivalent policy and procedures for cost and apportioning overheads
Labour employment costs (awards, EBA, contracts)
Material/supply costs (catalogues, contracts, standing agreements, market rates, warehousing margins)
Australian, international and enterprise quality standards and procedures

The Evidence Guide identifies critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range Statement.
Critical aspects of evidence
Apply safety requirements throughout the work sequence, including the use of personal protective clothing and equipment
Calculate the total costs of work for a significant non-routine service involving a number of tradespersons and without the aid of standard service costing schedules using the following or equivalent steps:
obtain information relevant to the determination of costs
interpret proposals, specifications and instructions for the work
estimate quantities of materials required
determine the types and amount of labour required to complete the work
estimate time required to complete the work
determine/calculate overheads
document the process and outcomes

Work effectively with others


Underpinning knowledge
General knowledge of work systems documentation processes
General knowledge of enterprise costing procedures
Detailed knowledge of mathematical formulae and processes relevant to costing
General knowledge of components of labour costs
General knowledge of enterprise/commercial approach to overhead costs
General knowledge of enterprise/commercial approaches to warehousing and physical distribution costs
General knowledge of enterprise information management processes, including storage requirements
Detailed knowledge of the processes for identifying, apportioning, summarising and validating total costs for work
Specific key competencies, underpinning and employability skills required to achieve the performance criteria
These include a number of processes that are learned throughout work and life, which are required in most jobs. Some of these are covered by the national key competencies, although others may be added. The details below highlight how these competencies are to be applied in the attainment of this unit.
Application of the key competencies in this unit are to satisfy the nominated level in which:
Level 1 - relates to working effectively within set conditions and processes;
Level 2 - relates to management or facilitation of conditions or processes; and
Level 3 - relates to design, development and evaluation of conditions or process.
How will the candidate apply the following key competency in this unit? The candidate will need to:
Collect, analyse and organise information
Collect, organise and understand information related to service costing, including technical, commercial, industrial and accounting requirements
(Level 2)


Communicate ideas and information
Communicate ideas and information to enable clarification of the work and related requirements and to present the outcomes in an appropriate manner
(Level 2)
Plan and organise activities
Plan and organise activities to avoid backtracking and reworking of solutions
(Level 2)
Work with others and in a team
Work with others and in a team by recognising dependencies and using cooperative approaches to optimise workflow and productivity
(Level 2)
Use mathematical ideas and techniques
Use mathematical ideas and techniques to estimate and validate labour, materials and on-costs and calculate work costs
(Level 2)
Solve problems
Create and apply systematic problem-solving techniques to anticipate costing problems, avoid reworking and avoid wastage
(Level 2)
Use technology
Use the workplace technology related to costing, including calculators and measuring devices and computing/ computer-aided systems
(Level 2)
Context of assessment
Assessment may occur on the job or in a workplace simulated facility with process equipment, materials, work instructions and deadlines


Method of assessment
Assessment methods must confirm consistency of performance over time and in a range of workplace contexts
Assessment should be by direct observation of tasks and questioning on underpinning knowledge
Assessment should be conducted over time and may be in conjunction with assessment of other units of competence
Specific resource requirements for this unit
Access is required to real or appropriately simulated situations involving estimation and costing of service operations
Access is required to specifications and costs of equipment and materials and information on labour costs and availability, on-costs, safety costs, regulations, quality standards, and enterprise procedures
Access is required to necessary facilities and associated equipment, including calculators, computers and software