Elements and Performance Criteria

The range of variables places the competency in context and allows for differences between enterprises and workplaces, including practices, knowledge and requirements. The range of variables also provides a focus for assessment and relates to the unit as a whole. The following variables may be present.

Costs factors:
· fixed
· direct
· indirect
· variable
· product
· period
· overhead.

Costing options:
· materials
· labor
· overheads
· external suppliers
· specialised requirements
· inventory
· machine hours
· process costing
· services costing.

Costing methods:
· direct labor hours
· direct labor costs
· machine hours
· materials
· overheads
· work in progress.

Terms of sale and payment conditions:
· cash
· credit
· discounts - prompt payment, volume discount, trade discount
· letter of credit
· bank draft
· credit cards
· EFTPOS.

Each unit of competency has an evidence guide that relates directly to the performance criteria and the range of variables. Its purpose is to guide assessment of the unit in the workplace and/or training program. The following components provide information to assist this purpose.

Underpinning knowledge
The essential knowledge and understanding a person needs to perform work to the required standards include:
· the cost structures operating within the enterprise in particular, and the industry generally.
· commercial terms and conditions operating within the seafood industry including those relevant to import and export of seafood product.
· procedures and processes for defining product quality and developing product specifications.
· regulations affecting the purchase and supply of seafood product.
· food safety standards in particular the requirements of storage, transport and distribution.
· enterprise procedures for the establishment of new clients and the maintenance of an existing client base.

Practical skills
The essential skills a person needs to perform work to the required standards include:
· communicating with stakeholders including customers, colleagues and/or regulators.
· gathering market intelligence.
· identifying and describing seafood species by quality characteristics, yield and food safety parameters.
· assessing seafood quality against customer specifications
· applying product knowledge
· calculating product costings
· planning work to meet objectives
· using technology
· giving attention to detail
· solving problems
· undertaking business and strategic planning
· maintaining business relationships.

Oral and written workplace communication skills used for:
· reading and interpreting enterprise procedures
· reading and writing complex correspondence
· completing complex forms
· reading and interpreting technical standards and regulations
· identifying and tracing product
· communicating procedures, standards and regulations in the workplace
· communicating with customers, clients and suppliers.

Numeracy skills used for:
· calculating cost structures
· estimating costs, margins, percentages
· calculating extensions of weight and price including totals
· converting between currency using foreign exchange rates.

Critical aspects of competence
Assessment must confirm ability to:
· perform the tasks necessary to determine the cost factors impacting on the enterprise, to develop commercial conditions which will enhance the enterprise and confirm those conditions with clients.

Assessment must confirm knowledge of:
· the range of historical data relevant to the enterprise costing structure
· options for reducing input costs
· quality assurance factors which impact on costs
· developing projections for cost, volume and profit
· industry and/or competitor pricing strategies
· demand curves for the species or season
· market expectations
· standard terms and conditions accepted for the industry or sector
· product specifications
· food safety and other relevant requirements
· processing options.

Interdependent assessment of units
This unit may be assessed after/with:
· No recommendations.

Context of assessment
Assessment is to be conducted in the workplace or in a simulated work environment.

Method of assessment
Preparation of a set or sets of documents relating to the typical activity of the enterprise.

Resources required for assessment
· examples of customer specifications
· samples of contracts for supply
· access to enterprise personnel for confirmation of costing data
· details of (seafood) resource availability.