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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply the principles of costing and pricing to a business venture 
SAQA US ID UNIT STANDARD TITLE
263455  Apply the principles of costing and pricing to a business venture 
ORIGINATOR
Task Team - New Venture Creation 
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  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
114594  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 are required to applying the principles of costing and pricing in determining profit margins for a new venture. The Unit Standard will assist the learner in determining the future profitability by establishing whether the costs involved will generate sufficient profit to justify the launching of the new venture.

Learners credited with this unit standard will be able to:
  • Explain the criteria of a price setting policy for a new venture.
  • Analyse internal and external factors that impact upon pricing decisions.
  • Demonstrate an understanding of the relationship between costs, revenue and profits. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the learner has the following knowledge and skills:
  • Mathematical Literacy at NQF Level 3. 

  • UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain 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 and pricing are differentiated in terms of a product or service. 

    ASSESSMENT CRITERION 3 
    The difference between fixed costs, variable costs and total costs are explained in the context of own venture. 

    SPECIFIC OUTCOME 2 
    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 specified in terms of their limitations. 

    ASSESSMENT CRITERION 4 
    Variations in pricing decisions are to be calculated in terms of the impact on the break-even 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 RANGE 
    Methods include but are not limited to absorptive costing and variable costing.
     

    ASSESSMENT CRITERION 2 
    Profit mark-up is calculated and analysed for own business. 

    ASSESSMENT CRITERION 3 
    A distinction between types of profit is made in relation to own business venture. 

    ASSESSMENT CRITERION 4 
    Competitive pricing is investigated and compared to inform effective costing and forecasting of operating a business. 


    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 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 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made when:
  • Analysing internal and external factors that impact upon pricing decisions. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively when:
  • Analysing internal and external factors that impact upon pricing decisions. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information to better understand and explain:
  • The criteria of a price setting policy for a new venture.
  • The relationship between costs, revenue and profits. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science and technology effectively and critically, showing responsibility towards the environment and health of others when:
  • Analysing internal and external factors that impact upon pricing decisions.
  • Demonstrating an understanding of the relationship between costs, revenue and profits. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Demonstrating an understanding of the relationship between costs, revenue and profits. 

  • UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 114594, "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  66249   Further Education and Training Certificate: New Venture Creation  Level 4  NQF Level 04  Reregistered  2023-06-30  SERVICES 
    Core  79886   National Certificate: Business Advising  Level 5  NQF Level 05  Reregistered  2023-06-30  SERVICES 


    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.
     
    NONE 



    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.