AS 92028 Annotated exemplars

This annotated exemplar is intended for teacher use only. Annotated exemplars consist of student evidence, with commentary, to explain key parts of a standard. These help teachers make assessment judgements at the grade boundaries.

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Level 1 Commerce assessment resources (external link) - NCEA.education

To achieve the standard, the student needs to demonstrate understanding of an organisation’s financial decision-making.

This involves:

• describing options available for the organisation to address a need, issue, or opportunity
• describing a decision, supported by information from a financial tool
• describing how the decision addresses the need, issue, or opportunity.

The student described possible options the marae could take to repair the roofs of two buildings, including the cost of each option.

The decision to undertake the highest level of repair (the ‘big fix’) was supported by a SWOT analysis. This referred to implications of the decision to undertake the big fix. Reference to the option being “up to $24,000 [more expensive]”, lower maintenance expenses in the future, and the potential for other repair expenses being necessary, raises the evidence from focusing on a decision to a financial decision.

The student has described why the big fix option meets the marae’s need to repair the roofs.

Explanatory Note 2 of the standard requires the student to discuss the organisation’s pūtake in the context of financial decision-making. The student has explained the marae’s pūtake/values in detail, with a focus on caring for the health and safety of its workers and community members, and kaitiakitanga of the marae buildings. The values have then been linked to the financial decision to undertake the big fix option.

For Merit, the student could go beyond identifying the marae’s stakeholders to explain how their perspectives informed the decision to undertake the big fix. In explaining possible consequences of the decision for the organisation and stakeholders, the student should focus on consequences specific to the big fix option.

For Merit, the student needs to examine an organisation’s decision-making.

This involves:

• explaining how stakeholder perspectives informed the decision-making
• explaining possible consequences of the decision for the organisation and its stakeholders.

The student has identified two possible vehicles the Salvation Army could purchase to meet its need for greater delivery capacity while maintaining financial viability and reducing gas emissions. The decision to buy an electric van over the diesel truck alternative is supported by a comparative budget for purchase and operating costs.

The student has explained stakeholders’ perspectives: the Salvation Army’s own position on climate change and the need to prioritise spending on its clients, the safety and workload of employees and volunteers, and how the public/potential donors would favour a cost-effective and climate-friendly vehicle. These perspectives were considered in making the financial decision.

Possible consequences of the financial decision are explained. For example, the student discusses the short- and long-term costs of purchasing and maintaining the vehicle.

The standard also requires the student to discuss the organisation’s pūtake in the context of financial decision-making. Three of the Salvation Army’s core values most relevant to a vehicle purchase were explained, and these were later referenced in the explanation of why the electric van was chosen over the diesel truck.

For Excellence, the student needs to evaluate an organisation’s decision-making.

The justification for buying the electric van should explain the extent to which stakeholder perspectives (beyond those of the Salvation Army) were met or not met. For example, will the lesser cargo capacity of the van increase the number of trips and consequently the workload of drivers?

There should also be an explanation of how possible negative consequences of buying the electric vehicle could be mitigated. This could include discussion of potential issues, such as limited battery range or the practicalities of charging.

For Excellence, the student needs to evaluate an organisation’s decision-making.

This involves analysing how the decision integrates stakeholder perspectives and responds to possible consequences.

The student responded to the Salvation Army’s need for a delivery vehicle to transport large and heavy items to Family Store customers. Three possible vehicles were evaluated, and a decision made to purchase a Toyota diesel truck. The decision is supported by a price/features comparison chart and a cost/benefit analysis for each vehicle. The options of financing the purchase through a bank loan or vendor finance were also explored, providing further financial data to inform the decision.

The student has explained the stakeholders’ general interests in purchasing a new delivery vehicle, then referred to specific stakeholder needs that informed the decision to purchase the Toyota. For example, the double and sliding door feature of the vehicle would assist the employees/volunteers to upload and unload furniture more easily. While both the Toyota and Isuzu have three seats in the cab enabling more opportunities for volunteers, the Toyota offers this feature for less than half the purchase price. The Toyota will also suit employees/volunteers who are not comfortable driving manual transmission vehicles.

The standard also requires the student to discuss the organisation’s pūtake in the context of financial decision-making. The values of the Salvation Army have been explained and then referenced in the explanation of why the Toyota truck was selected.

As required for Excellence, the student has integrated some stakeholder perspectives, those of the Salvation Army and customers. For example, they have acknowledged that the Toyota has the capacity to carry larger and heavier furniture to help customers who would otherwise not be able to get their purchases home. The student counters this with the suggestion that, if the organisation wishes to reduce its carbon emissions, customers may need to wait for their deliveries until the truck is full.

The student has also considered responses to potential negative consequences. They have discussed how the harmful environmental impact of a diesel vehicle can be mitigated by maintaining the vehicle and limiting the number of delivery trips.