NCEA Level 1 Commerce

Course Overview

Term 1
Commerce 1.4 (92031-Demonstrate understanding of how an organisation’s financial viability is affected by an event) - 5 credits, externally assessed.

Explanatory Note 1
Demonstrate understanding of how an organisation's financial viability is affected by an event involves:
- describing how an organisation is financially viable, supported by a model or concept
- describing how an organisation's financial viability is negatively affected by an event.

Examine how an organisation's financial viability is affected by an event involves:
- explaining how an organisation’s financial viability is affected by an event, supported by a model or concept
- describing actions the organisation could take to remain financially viable.

Evaluate how an organisation's financial viability is affected by an event involves:
- analysing a recommended action in response to an event for the organisation to remain financially viable, informed by a model or concept.

Explanatory Note 2
As part of the evidence provided, students must include discussion of pūtake in the context of demonstrating understanding of how an organisation's financial viability is affected by an event.

Explanatory Note 3
Financial viability means the ability of an organisation to continue operating from a financial perspective over time.

Explanatory Note 4
Models or concepts are used to observe, understand, and make predictions about economic behaviour.

Examples include:
- supply and demand model
- income statement
- cost/volume/profit analysis
- cost/benefit analysis.

Explanatory Note 5
An event is something that happens that has economic significance to an organisation.

Examples include:
- a change in market conditions
- a natural event
- a change for a stakeholder.

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.

Term 2
Commerce 1.2 (92029-Demonstrate understanding of price using a model or concept) - 5 credits, internally assessed

Explanatory Note 1
Demonstrate understanding of price determination for an organisation involves:
- determining a price informed by financial and non-financial information, and a model or concept.

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

Evaluate price determination for an organisation involves:
- justifying the determined price using financial or non-financial information, and a model or concept.
- explaining the consequences of the determined price with reference to impacts on the organisation and stakeholders.

Explanatory Note 2
Models or concepts are used to observe, understand, and make predictions about economic behaviour.

Examples include:
- supply and demand model
- projected income statement
- cost/volume/profit analysis.

Explanatory Note 3
An organisation must relate to an organisation that sets a price for either a product or service.

Explanatory Note 4
Internal factors refer to anything within and under the control of the entity, and which may have financial implications for the entity.

Examples of internal factors include:
- staff
- processes
- organisational structure.

External factors refer to anything outside and under no control of the entity, and which may have financial implications for the entity.

Examples of external factors include:
- legislation and regulation
- competition
- customers and suppliers.

Explanatory Note 5
Stakeholders are people or groups with an interest or concern in something, especially a business.

Examples of stakeholders include:
-employees
- suppliers
- whānau, hapū, or iwi.


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.

Term 3
Commerce 1.1 (92028-Demonstrate understanding of an organisation’s financial decision-making)) - 5 credits, internally assessed

Explanatory Note 1
Demonstrate understanding of an organisation’s financial decision making involves:
- describing options available for the organisation to address a need, issue, or opportunity
- describing a decision using supporting information from a financial tool
- describing how the decision addresses the need, issue, or opportunity.

Examine an organisation’s financial decision making involves:
- explaining how stakeholder perspectives informed the decision making
- explaining possible consequences of the decision for the organisation and stakeholders.

Evaluate an organisation’s financial decision making involves:
- analysing how the decision integrates stakeholder perspectives and responds to possible consequences.

Explanatory Note 2
As part of the evidence provided, students must include discussion of pūtake in the context of the process that leads to an organisation’s financial decision.

Explanatory Note 3
An organisation is a group of people who work together with a particular purpose.

Examples include:
- whānau, hapū, or iwi
- clubs
- charities
- businesses.

Explanatory Note 4
Financial tools are tools that are used by an organisation for financial management.

Examples include:
- a price/feature comparison chart
- a SWOT analysis
- a budget
- a cost-benefit analysis
- an online calculator or form (for example, in considering finance options).

Explanatory Note 5
Stakeholders are people or groups with an interest or concern in something, especially a business.

Examples of stakeholders include:
- employees
- suppliers
- whānau, hapū, or iwi.

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.

Term 4
In Term 4, ākonga (students) will reflect on what they have learned this year and how they can use this knowledge and skills in the future.

There will be an opportunity to develop core Accounting and Economics skills for Year 12.