AS 92029 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.

Download all exemplars and commentary [PDF, 4.9 MB]

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

For Achieved, the student needs to demonstrate understanding of price determination for an organisation.

This involves using financial or non-financial information to determine a price, supported by a model or concept.

The student has used financial information (competitors’ prices and costing, plus markup) to support their price of $10 for a pewter jewellery item. The price was also informed by non-financial information (market research). Income statements show the projected profit at varying levels of sales. One income statement would have been sufficient to model the price determination.

For Merit, in responding to the external factor of a trestle tax, costs in the break-even table and income statement should be consistent. The income statement evidence to support the price reduction should be explained, particularly as all sales scenarios would result in a loss.

For Merit, the student needs to examine price determination for an organisation.

This involves:

• explaining how the determination of price could be affected by a change in an internal or external factor
• explaining options for changing or not changing the price, supported by financial or non-financial information and a model or concept.

The student has considered three pricing options in response to the imposition of a 20% tax on profit, and decided to retain the original price of $2 for a sausage-in-bread.

The price determination was informed by non-financial information (the pūtake of the business). The student also used financial information, survey results, and secondary research (prices at previous market days). The original projected income statement model was reworked to reflect the tax and its impact on profit.

For Excellence, the student could include a justification of retaining the original price in advance of the second selling phase, rather than in a post-selling reflection. There should also be further detail in the explanation of how stakeholders would be impacted.

For Excellence, the student needs to evaluate price determination for an organisation.

This involves:

• justifying the determined price, supported by financial or non-financial information and a model or concept
• discussing consequences of the determined price with reference to impacts on the organisation and stakeholders.

The student has used financial information and a cost and profit calculation to determine a $49.99 price for a reusable cup. They have also used non-financial information, such as consumer preferences.

The student has responded to the external factor of an extremely cold winter that could drive up demand for a reusable cup for hot drinks.

They considered strengths and weaknesses of changing or retaining the original price, and used a demand curve to explain in detail the impact of a colder winter on demand (D shifts right to D1). They also explained how a shortage would support a price increase to $51.99, and the impact this would have on production.

The student also identified potential consequences on the business: the ability to employ a staff member, and to increase profit and grow the business. The impact of a price increase on customers was explained, as was the potential for charities to benefit from the business increasing its donations to them.