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Manage operations to budget

Unit Descriptor 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.

1 . Control costs.
  1. Implement effective cost reduction measures according to company policy and procedures.

  2. Assess and interpret information on costs and resource allocation.

  3. Actively encourage team members to control costs in their areas of responsibility.

  4. Promptly implement recommendations for improving cost reduction or communicate to relevant personnel.

2 . Control budget.
  1. Monitor and maintain expenditure within budget targets according to business policy.

  2. Compare actual income and expenditure to budget targets at regular intervals according to business policy.

  3. Analyse gross profit and loss figures by business areas and compare with budget targets.

  4. Monitor net profit figures and report according to budget targets.

  5. Promptly inform relevant personnel where potential occurs for budget under or overspend.

  6. Take prompt corrective action where significant deviations from budget occur.

  7. Negotiate necessary changes to agreed budget allocations in advance of requirement.

  8. Authorise modifications to existing budgets according to business policy.

3 . Propose expenditure.
  1. Ensure estimates of costs and benefits are supported by valid, relevant information.

  2. Ensure final recommendations are supported by realistic alternatives and contain accurate, clear proposals.

  3. Ensure recommendations clearly indicate net benefits over designated timeframe and related changes in operations.

  4. Clarify contentious issues by further explanation.

  5. Compare estimates to actual costs and benefits to improve future proposals.

4 . Maintain business accounting systems.
  1. Manage and maintain business policy and procedures in regard to record-keeping systems.

  2. Monitor and maintain business systems for recording sales figures, revenue and expenditure.

  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.
  1. Observe business policy and procedures in regard to preparation of budget or target figures.

  2. Compare, analyse, document and report budget and accurate sales revenue and expenditure figures according to budget targets and business policy.

  3. Maintain accurate records on past sales budgets or targets according to business policy.

  4. Present proposed budgets or targets accurately and concisely.

  5. Justify variations to proposed targets and report according to business policy.

  6. Report sales budgets accurately and concisely.

6 . Set budget targets and monitoring mechanisms.
  1. Conduct budget negotiations within a set timeframe and in a manner likely to promote good relationships.

  2. Ensure budget negotiations reflect the overall business policies and objectives relevant to the manager's area of responsibility.

  3. Acquire and deploy resources according to relevant legislation and company guidelines.

  4. Maintain accurate and up-to-date records of resource allocation and usage according to company guidelines.

  5. Develop and review management systems that enable timely collection, management and processing of information.

  6. Complete records of budget performance and expenditure and report according to company procedures and guidelines.

  7. Enforce budget audit mechanisms and compliance requirements.

  8. Promptly inform relevant personnel of budget decisions.

Key CompetencyExamples of ApplicationPerformance
How can information be collected, analysed and organised?
How are ideas and information communicated within this competency?
How are activities planned and organised?
How are problem solving skills applied?
How are mathematical ideas and techniques used?
How is use of technology applied?
How is team work used within this competency?

Range Statement

Company policy and procedures in regard to:

Information may be obtained by:

Resources may include:

Team members may include:

Relevant personnel may include:

Proposals may:

Record-keeping systems may include:

Relevant legislation may include:

Budget or target figures may encompass:

Review of management systems may include:

Audit mechanisms may be:

Budget decisions may vary according to:

Evidence Guide

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

Context of and specific resources for assessment

Assessment must ensure access to:

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:

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.

Employability skills embedded in this unit should be assessed holistically in the context of the job role and with other relevant units that make up the skill set or qualification.