Purpose
Achievement Criteria
Explanatory Note 1
Demonstrate understanding of price determination for an organisation involves:
- describing how a price has been determined for an organisation using financial or non-financial information
- using a concept or model to support the description.
Examine price determination for an organisation involves:
- explaining how the price could be affected by a change in an internal or external factor
- explaining options for changing, or not changing, the price
- using financial or non-financial information and a concept or model to support the explanation.
Evaluate price determination for an organisation involves:
- justifying the determined price supported by financial or non-financial information, and a concept or model
- discussing possible consequences of the determined price with reference to impacts on the organisation and its stakeholders.
Explanatory Note 2
A concept or model is used to observe, understand, and make predictions about organisational behaviour.
Examples include:
- supply and demand model
- projected income statement
- cost/volume/profit analysis
- pricing strategies.
Explanatory Note 3
An organisation is a group of people who work together with a particular purpose.
For the purpose of this achievement standard, the organisation must be one that sets a price for either a product or service.
Explanatory Note 4
Internal factors refers to any circumstances within and under the control of the organisation, and which may have financial implications for the organisation.
Examples include:
- staffing
- processes
- organisational structure.
External factors refers to any circumstances outside and under no control of the organisation, and which may have financial implications for the organisation.
Examples include:
- legislation and regulation
- competition
- customers and suppliers.
Explanatory Note 5
For the purpose of this achievement standard, financial or non-financial information is information obtained from the organisation or other market participants that can be linked to price determination.
Examples include:
- pūtake, goals, and values of the organisation
- production costs
- market research data
- price data from other organisations.
Shared Explanatory Note
Refer to the NCEA glossary for Māori, Pacific, and further subject-specific terms and concepts.
This Achievement Standard is derived from the Social Sciences Learning Area at Level 6 of The New Zealand Curriculum: Learning Media, Ministry of Education, 2007.
Conditions of Assessment
Assessor involvement during the assessment event is limited to monitoring and guiding the early direction of the work, including guidance on the use of an appropriate model or concept. Using pricing strategies in isolation to support a description or explanation may not generate sufficient evidence to meet the requirements of the standard. Assessors should direct students to use their chosen strategy in conjunction with another concept or model (eg supply and demand, projected income statement, or cost/volume/profit analysis). Student work which has received sustained or detailed feedback is not suitable for submission towards this Achievement Standard.
At the start of the assessment event, assessors need to stipulate or approve the selection of an organisation and item for price consideration.
Evidence for all parts of this assessment can be in te reo Māori, English, or New Zealand Sign Language.
Useful Pages
Unpacking the Standard
Mātauranga Māori constitutes concepts and principles that are richly detailed, complex, and fundamental to Māoridom. It is important to remember that the practice of these are wider and more varied than their use within the proposed NCEA Achievement Standards and supporting documentation.
We also recognise that the cultures, languages, and identities of the Pacific Islands are diverse, varied, and unique. Therefore the Pacific concepts, contexts, and principles that have been incorporated within NCEA Achievement Standards may have wide-ranging understandings and applications across and within the diversity of Pacific communities. It is not our intention to define what these concepts mean but rather offer some ways that they could be understood and applied within different subjects that kaiako and students alike can explore.
Mātauranga Māori constitutes concepts and principles that are richly detailed, complex, and fundamental to Māoridom. It is important to remember that the practice of these are wider and more varied than their use within the proposed NCEA Achievement Standards and supporting documentation.
We also recognise that the cultures, languages, and identities of the Pacific Islands are diverse, varied, and unique. Therefore the Pacific concepts, contexts, and principles that have been incorporated within NCEA Achievement Standards may have wide-ranging understandings and applications across and within the diversity of Pacific communities. It is not our intention to define what these concepts mean but rather offer some ways that they could be understood and applied within different subjects that kaiako and students alike can explore.
The intent of the Achievement Standard
In this Achievement Standard, ākonga will show an understanding of how price determination functions in the economic system.
Ākonga will use financial or non-financial information and a concept or model to investigate the price of a particular good or service. They will look at the factors that affect, and are affected by, price. Ākonga will also look ahead to the possible consequences of a price determination. These may be ones that impact the organisation or its stakeholders.
By engaging with an organisation, ākonga will strengthen their financial decision-making. They will experience the often fine balance of price within wider financial contexts. This will lead them to become more aware as consumers. They will be able to identify factors shaping the pricing decisions that impact them.
Making reliable judgements
At all levels of achievement, ākonga will engage with relevant financial or non-financial information in context. Evidence of this engagement should be present in any price determination. When discussing concepts or models, ākonga may choose to include visual images. These should conform with conventions such as titles, units, and labelling of axes. Ākonga may also provide written descriptions. These should include reference to actual quantities and dollar values as appropriate.
At higher levels of achievement, ākonga will explore the links between this information, their concept or model, and price in more depth. They will exhibit an awareness of how a change in an internal or external factor can influence a change in the price. They will also explain possible paths forward for the organisation by examining different pricing options, which may include the option of keeping the current price. For the price explanations referred to above, financial or non-financial information and a concept or model should be applied. In justifying a determined price, ākonga will exhibit critical thinking, making a decision by weighing the possible benefits of their chosen option against potential costs for both the organisation and its stakeholders.
Collecting evidence
Ākonga will identify and use relevant financial or non-financial information. Non-financial information does not directly relate to an organisation’s finances. Non-financial information may relate to, for example, pūtake, kaitiakitanga, conflicting goals, laws, seasonality, or consumer needs. Ākonga can use either financial or non-financial information, or a combination of both.
Ākonga may gather this information in many ways. These may include consultation with the organisation, or independent market research. Ākonga may choose to survey the organisation’s target market. They may also research what similar organisations charge for goods and services.
Possible contexts
Ākonga can investigate price for a wide range of organisations. They can be commercial or community-based, and real or hypothetical. Familiar contexts will enable ākonga to better identify relevant financial and non-financial information.
This Achievement Standard can also be part of a programme of learning in which ākonga run their own organisation. They will determine a price for their organisation’s goods or services.
The intent of the Achievement Standard
In this Achievement Standard, ākonga will show an understanding of how price determination functions in the economic system.
Ākonga will use financial or non-financial information and a concept or model to investigate the price of a particular good or service. They will look at the factors that affect, and are affected by, price. Ākonga will also look ahead to the possible consequences of a price determination. These may be ones that impact the organisation or its stakeholders.
By engaging with an organisation, ākonga will strengthen their financial decision-making. They will experience the often fine balance of price within wider financial contexts. This will lead them to become more aware as consumers. They will be able to identify factors shaping the pricing decisions that impact them.
Making reliable judgements
At all levels of achievement, ākonga will engage with relevant financial or non-financial information in context. Evidence of this engagement should be present in any price determination. When discussing concepts or models, ākonga may choose to include visual images. These should conform with conventions such as titles, units, and labelling of axes. Ākonga may also provide written descriptions. These should include reference to actual quantities and dollar values as appropriate.
At higher levels of achievement, ākonga will explore the links between this information, their concept or model, and price in more depth. They will exhibit an awareness of how a change in an internal or external factor can influence a change in the price. They will also explain possible paths forward for the organisation by examining different pricing options, which may include the option of keeping the current price. For the price explanations referred to above, financial or non-financial information and a concept or model should be applied. In justifying a determined price, ākonga will exhibit critical thinking, making a decision by weighing the possible benefits of their chosen option against potential costs for both the organisation and its stakeholders.
Collecting evidence
Ākonga will identify and use relevant financial or non-financial information. Non-financial information does not directly relate to an organisation’s finances. Non-financial information may relate to, for example, pūtake, kaitiakitanga, conflicting goals, laws, seasonality, or consumer needs. Ākonga can use either financial or non-financial information, or a combination of both.
Ākonga may gather this information in many ways. These may include consultation with the organisation, or independent market research. Ākonga may choose to survey the organisation’s target market. They may also research what similar organisations charge for goods and services.
Possible contexts
Ākonga can investigate price for a wide range of organisations. They can be commercial or community-based, and real or hypothetical. Familiar contexts will enable ākonga to better identify relevant financial and non-financial information.
This Achievement Standard can also be part of a programme of learning in which ākonga run their own organisation. They will determine a price for their organisation’s goods or services.