Unit of competency Outline
Date retreived
22/07/2026 8:01 PM AWST
22/07/2026 8:01 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage operations to budget
Manage operations to budget
Unit of competency
National Code
SIRXFIN005A
SIRXFIN005A
State Code
S6129
S6129
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
13/11/2012
Field of Education
080101 - Accounting
Original Release Date
13/11/2012
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to control cost expenditure while managing the overall activities of a wholesale or retail operational area to budget.
Notes
Elements and Performance Criteria
1. Control costs.
- 1.1.Implement effective cost reduction measures, according to company policy and procedures.
- 1.2.Assess and interpret information on costs and resource allocation.
- 1.3.Encourage team members actively to control costs in their areas of responsibility.
- 1.4.Implement recommendations promptly for improving cost reduction or communicate to relevant personnel.
2. Control budget.
- 2.1.Monitor and maintain expenditure within budget targets according to business policy.
- 2.2.Compare actual income and expenditure to budget targets at regular intervals according to business policy.
- 2.3.Analyse gross profit and loss figures by business areas and compare with budget targets.
- 2.4.Monitor net profit figures and report according to budget targets.
- 2.5.Inform relevant personnel promptly where potential occurs for budget under or overspend.
- 2.6.Take prompt corrective action where significant deviations from budget occur.
- 2.7.Negotiate necessary changes to agreed budget allocations in advance of requirement.
- 2.8.Authorise modifications to existing budgets according to business policy.
3. Propose expenditure.
- 3.1.Ensure estimates of costs and benefits are supported by valid, relevant information.
- 3.2.Ensure final recommendations are supported by realistic alternatives and contain accurate, clear proposals.
- 3.3.Ensure recommendations clearly indicate net benefits over designated timeframe and related changes in operations.
- 3.4.Clarify contentious issues by further explanation.
- 3.5.Compare estimates to actual costs and benefits to improve future proposals.
4. Maintain business accounting systems.
- 4.1.Manage and maintain business policy and procedures in regard to record-keeping systems.
- 4.2.Monitor and maintain business systems for recording sales figures, revenue and expenditure.
- 4.3.Monitor and maintain systems for recording and retrieving financial, personnel and payroll information as required by business policy and relevant legislation.
5. Prepare business sales budgets.
- 5.1.Observe business policy and procedures in regard to preparation of budget or target figures.
- 5.2.Compare, analyse, document and report budget and accurate sales revenue and expenditure figures, according to budget targets and business policy.
- 5.3.Maintain accurate records on past sales budgets or targets according to business policy.
- 5.4.Present proposed budgets or targets accurately and concisely.
- 5.5.Justify variations to proposed targets and report according to business policy.
- 5.6.Report sales budgets accurately and concisely.
6. Set budget targets and monitoring mechanisms.
- 6.1.Conduct budget negotiations within a set timeframe and in a manner likely to promote good relationships.
- 6.2.Ensure budget negotiations reflect the overall business policies and objectives relevant to the manager’s area of responsibility.
- 6.3.Acquire and deploy resources, according to relevant legislation and company guidelines.
- 6.4.Maintain accurate and up to date records of resource allocation and usage according to company guidelines.
- 6.5.Develop and review management systems that enable timely collection, management and processing of information.
- 6.6.Complete records of budget performance and expenditure and report according to company procedures and guidelines.
- 6.7.Enforce budget audit mechanisms and compliance requirements.
- 6.8.Inform relevant personnel promptly of budget decisions.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording in the performance criteria is detailed below.
Company policy and procedures in regard to:
operating procedures and instructions
financial management
resource management
reporting mechanisms.
Information may be obtained by:
direct observation
accessing written reports
accessing numerical data.
Resources may include:
people
materials
equipment and technology
finances
time.
Team members may include:
full-time, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Relevant personnel may include:
senior managers
team members.
Proposals may:
be long-term or short-term
include potential improvements in profitability
productivity
quality of service
environmental impact
working conditions
working relationships
team motivation.
Record-keeping systems may include:
manual
computerised.
Relevant legislation may include:
taxation law, including GST
superannuation guarantee
awards, workplace agreements, and other industrial arrangements
WHS
workplace relations
workers' compensation
industry codes of practice
transport, storage and handling of goods
Australian Competition and Consumer Commission provisions
Trade Practices and Fair Trading Acts.
Budget or target figures may encompass:
sales
cash flow
net profit
payroll
staff expenditure
capital
maintenance costs.
Review of management systems may include:
stakeholder consultation
modelling results
cost-benefit analysis
data analysis.
Audit mechanisms may be:
manual or electronic
cyclical
automated.
Budget decisions may vary according to:
key performance indicators
strategic objectives
cash flow
net profit or loss
market and sales indicators
brand value
quality standards and criteria
performance benchmarks.
Company policy and procedures in regard to:
operating procedures and instructions
financial management
resource management
reporting mechanisms.
Information may be obtained by:
direct observation
accessing written reports
accessing numerical data.
Resources may include:
people
materials
equipment and technology
finances
time.
Team members may include:
full-time, part-time, casual or contract staff
people from a range of social, cultural and ethnic backgrounds
people with varying degrees of language and literacy levels.
Relevant personnel may include:
senior managers
team members.
Proposals may:
be long-term or short-term
include potential improvements in profitability
productivity
quality of service
environmental impact
working conditions
working relationships
team motivation.
Record-keeping systems may include:
manual
computerised.
Relevant legislation may include:
taxation law, including GST
superannuation guarantee
awards, workplace agreements, and other industrial arrangements
WHS
workplace relations
workers' compensation
industry codes of practice
transport, storage and handling of goods
Australian Competition and Consumer Commission provisions
Trade Practices and Fair Trading Acts.
Budget or target figures may encompass:
sales
cash flow
net profit
payroll
staff expenditure
capital
maintenance costs.
Review of management systems may include:
stakeholder consultation
modelling results
cost-benefit analysis
data analysis.
Audit mechanisms may be:
manual or electronic
cyclical
automated.
Budget decisions may vary according to:
key performance indicators
strategic objectives
cash flow
net profit or loss
market and sales indicators
brand value
quality standards and criteria
performance benchmarks.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
negotiating, developing and implementing budgets according to business policy and procedures
managing and maintaining accounting systems according to business policy and procedures
monitoring, analysing and reporting on operational areas income and expenditure against budget
taking corrective actions, where appropriate, where income and expenditure performance is not being completed according to budget or business targets
consistently producing financial reports to standard business requirements over a period of time
consistently implementing policy and procedures for the reporting and recording of budgetary and financial information within an operational area
developing, advocating and gaining approval for an operational area's budget.
Context of and specific resources for assessment
Assessment must ensure access to:
a real or simulated work environment
business or sample policy and procedures in regard to financial management
an accounting system
budgetary information
a team involved in budget control.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
a case study
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
negotiating, developing and implementing budgets according to business policy and procedures
managing and maintaining accounting systems according to business policy and procedures
monitoring, analysing and reporting on operational areas income and expenditure against budget
taking corrective actions, where appropriate, where income and expenditure performance is not being completed according to budget or business targets
consistently producing financial reports to standard business requirements over a period of time
consistently implementing policy and procedures for the reporting and recording of budgetary and financial information within an operational area
developing, advocating and gaining approval for an operational area's budget.
Context of and specific resources for assessment
Assessment must ensure access to:
a real or simulated work environment
business or sample policy and procedures in regard to financial management
an accounting system
budgetary information
a team involved in budget control.
Methods of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
observation of performance in the workplace
third-party reports from a supervisor
a case study
written or verbal questioning to assess knowledge and understanding
review of portfolios of evidence and third-party workplace reports of on-the-job performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| N0750 | WRWFN403A | Manage operations to budget | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| J151 | SIR50112 | Diploma of Retail Management | Qualification |
| S579 | SIR50107 | Diploma of Retail Management | Qualification |