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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply the principles of costing and pricing to a business venture 
SAQA US ID UNIT STANDARD TITLE
114594  Apply the principles of costing and pricing to a business venture 
ORIGINATOR
SGB Generic Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Generic Management 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular-Fundamental  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 
2008-05-13  2009-05-13  SAQA 0160/05 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2010-05-13   2013-05-13  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
263455  Apply the principles of costing and pricing to a business venture  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is for learners who want to be competent in applying the principles of costing and pricing in determining profit margins for a new venture. The Unit Standard will assist the learner to determine the future profitability by establishing whether the costs involved will generate sufficient profit to justify the launching of the new venture.

The qualifying learner will be able to:
  • Identify and apply the criteria of a price setting policy for a new venture.
  • Identify and analyse internal and external factors that impact on pricing decisions.
  • Demonstrate an understanding of the relationship between costs, revenue and profits. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners accessing this Unit Standard should be competent in Mathematical Literacy and at NQF Level 3. 

    UNIT STANDARD RANGE 
  • Costing and pricing in trading, retailing, manufacturing and services.
  • Product and service comparisons
  • Costing and pricing calculations 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify and apply the criteria of a price setting policy for a new venture. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The flow of the trading cycle is explained and illustrated for a new venture. 

    ASSESSMENT CRITERION 2 
    The concepts costing, pricing and tendering are differentiated accurately. 

    ASSESSMENT CRITERION 3 
    The difference between fixed costs, variable costs and total costs is demonstrated in context of own venture. 

    SPECIFIC OUTCOME 2 
    Identify and analyse internal and external factors that impact upon pricing decisions. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The internal factors impacting upon pricing decisions are identified and discussed in relation to the profitability of own venture. 

    ASSESSMENT CRITERION 2 
    The external factors impacting upon pricing decisions are identified and discussed in relation to the profitability of own venture. 

    ASSESSMENT CRITERION 3 
    The business activity levels are recognised and limitations are specified. 

    ASSESSMENT CRITERION 4 
    Variations in pricing decisions are to be calculated in terms of the impact on the breakeven point. 

    SPECIFIC OUTCOME 3 
    Demonstrate an understanding of the relationship between costs, revenue and profits. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Available costing methods are reviewed in relation to own business. 

    ASSESSMENT CRITERION 2 
    Product/Services costs and prices are calculated accurately. 

    ASSESSMENT CRITERION 3 
    Break-even point is determined for the business venture. 

    ASSESSMENT CRITERION 4 
    Profit mark-up is calculated and analysed for own business. 

    ASSESSMENT CRITERION 5 
    A distinction between types of profit is made in relation to own business venture. 

    ASSESSMENT CRITERION 6 
    Costing and pricing methods are reviewed to ensure correct application. 

    ASSESSMENT CRITERION 7 
    Expenses and revenues are classified and categorised for the new venture. 

    ASSESSMENT CRITERION 8 
    Competitive markets are investigated and compared to inform effective costing and forecasting of operating expenses. 

    ASSESSMENT CRITERION 9 
    Suppliers and new products are assessed in terms of potential contribution to profit and market share. 

    ASSESSMENT CRITERION 10 
    Competing products/services are investigated and opportunities for development/improvement are identified. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • An individual wishing to be assessed (including through RPL) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or by an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA .
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Trading cycle
  • Definitions of capital, costs, revenue, pricing, and profits.
  • Determination of break-even point
  • Costing and pricing methods
  • Direct and indirect costs
  • Application of commonly-used information gathering techniques.
  • Application of financial concepts.
  • Appropriate use of financial analysis in making accurate decisions.
  • Banking, banking application forms, bank statements and interest rates. 

  • UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking, in terms of mathematical skills in costing and pricing. 

    UNIT STANDARD CCFO ORGANISING 
    Self-organisation and management using structured methods for profitability. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, organise and evaluate information using mathematical and accountancy methods in relation to appropriate financial activities. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills verbally, graphically and in writing. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 263455, which is "Apply the principles of costing and pricing to a business venture", Level 4, 6 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23953   Further Education and Training Certificate: New Venture Creation (SMME)  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2009-05-13  Was SERVICES until Last Date for Achievement 
    Core  20884   National Certificate: New Venture Creation (SMME)  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-04-10   
    Elective  72051   National Certificate: Electrical Engineering  Level 3  NQF Level 03  Passed the End Date -
    Status was "Registered" 
    2013-11-07  As per Learning Programmes recorded against this Qual 
    Elective  58950   National Certificate: Gas Installations  Level 3  NQF Level 03  Reregistered  2023-06-30  CHIETA 
    Elective  58063   Further Education and Training Certificate: Labour Recruitment Services  Level 4  NQF Level 04  Reregistered  2023-06-30  SERVICES 
    Elective  58394   National Certificate: Film and Television Production  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  MICTS 
    Elective  65050   National Certificate: Music  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  CATHSSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Almel Training 
    2. Big Fish School of Digital Filmmaking (Pty) Ltd 
    3. CIRCLEWAY TRAINING (PTY) LTD 
    4. College of Cape Town - Pinelands Campus 
    5. ELECTRICAL CONTRACTORS ASSOCIATION OF SOUTH AFRICA, CAPE TOWN 
    6. eMedia Investment 
    7. ESKOM KOEBERG - RADIATION PROTECTION 
    8. False Bay College - Westlake Campus 
    9. FILM Mentorship & Training 
    10. Footprint Media academy Pty ltd 
    11. IQRM TRAINING CC 
    12. JOSMAP TRAINING INSTIUTE 
    13. Learn A Trade 
    14. Media Village Communication 
    15. MOVING AHEAD DEVELOPMENT AGENCY 
    16. PHAKGAMANG MATSIANA BUSINESS ENTERPRISE 
    17. South African Film Institute 
    18. The Media Workshop cc 
    19. The Water Training Institute of South Africa 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.