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 to address a need, issue, or opportunity for an organisation
• describing a decision that addresses the need, issue, or opportunity
• using data from a financial tool to support the decision-making.

The student has described possible options for using a donation to improve an aspect of the school. Fitting out a weights room, buying smartboards, or buying new laptops have been compared using two financial tools (one detailed financial tool would be sufficient). Stakeholder perspectives on the three options have been explained.

The decision to fit out a weights room was supported by data from the financial tool/s. The student has explained why the weights room option was selected over the two alternatives.

Explanatory Note 2 of the standard requires the student to discuss the organisation’s pūtake in the context of the financial decision-making – that is, the decision to equip a weights room. The student has effectively explained how a focus on physical activity can contribute to students’ mental health and motivation, ultimately helping ZHS deliver a well-rounded education.

For Merit, in addition to explaining stakeholder perspectives relevant to the decision, the student would explain consequences of the financial decision for ZHS. A positive consequence is that the school can earn income from gym memberships. A second consequence (positive or negative) is required. One consequence for a stakeholder has been provided (students having access to a cheap gym), and a second is required for Merit.

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

This involves:

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

The student has identified that the school has an opportunity to use a $180,000 grant to address the need to improve their pool facilities. Two options, repairing the existing pool or building a new one, are considered by the student. The school has an expectation that the financial decision is cost effective and sustainable in nature.

The decision to build a new pool was supported by data from the financial tool, the cost-benefit analysis.

The standard also requires the student to discuss ABC High School’s pūtake in the context of the financial decision made. Despite the decision to build a new pool being considerably more expensive than the repair option, the student has justified the decision in terms of long-term cost effectiveness. The decision to build a new pool better meets the school’s commitment to kaitiakitanga than the repair option. 

The student has explained the perspectives of stakeholders relevant to the decision about repairing or replacing the school pool.

Possible consequences of the financial decision are explained. For example, the teachers can plan lessons ahead of time because they don’t have to worry about issues such as a leaking pool. The pool is available summer and winter, but teachers will now have to compete for spots during school time. The school can host events because they can show off the new pool, and will also have lower maintenance costs because the pool is new. 

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

Although the student has analysed how the decision considered stakeholder perspectives, Excellence also requires an explanation of how possible negative consequences would be mitigated. These need to be specific to the new pool. A booking system to mitigate the issue with more teachers competing for the spots, and sponsorships to pay for maintenance, could apply to both the new and the repaired pool.

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

This involves analysing how the decision considers stakeholder perspectives and how the organisation could respond to possible consequences.

The student has described options to address the organisation’s need for a delivery vehicle to transport furniture and other household items for resale. Two possible vehicles were evaluated, and a decision made to purchase an LDV van. The decision is supported by data from the financial tool/s – a comparison of positive and negative features, including the purchase price, and a comparison on finance costs based on a loan calculator.

The standard also requires the student to discuss the organisation’s pūtake in the context of the financial decision-making. XXX’s pūtake emphasises waste reduction, financial viability, and the well-being of its stakeholders. The student has argued that the LDV vehicle better meets XXX’s pūtake than the Volkswagen alternative.

The perspectives of management, employees/volunteers, and community members were explained. For example, management and community members value environmental sustainability, whereas the employees/volunteers value safety and reliability. One positive and two negative consequences of purchasing the LDV vehicle were explained.

As required for Excellence, the student has analysed how the perspectives of the three stakeholders were considered in reaching the financial decision. While management’s wish for financial constraint has been met, the student has acknowledged that some personnel and community interests have been compromised by the financial decision.

The student has considered mitigations to the potential negative consequences of the LDV’s environmental impact, and it being a manual transmission vehicle. A response to the positive consequence of the van’s low cost has also been suggested.