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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Create sustainable value through appropriate cost and pricing strategies 
SAQA US ID UNIT STANDARD TITLE
336680  Create sustainable value through appropriate cost and pricing strategies 
ORIGINATOR
SGB Procurement, Logistics and Supply Chain Mngt 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Procurement 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6  10 
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

PURPOSE OF THE UNIT STANDARD 
This Unit Standard will enable learners to create sustainable value through appropriate cost and pricing strategies.

People credited with this Unit Standard will be able to contribute towards the creation of sustainable value through analysing current cost and pricing strategies and recommending improved strategies that will make meaningful contributions towards the achievement of organisational strategic imperatives.

A learner credited with this Unit Standard will be able to:
  • Analyse the fundamentals of cost.
  • Use various mechanisms to manage the price of products and services.
  • Use various cost analysis techniques to calculate the real cost of products and services.
  • Use cost and target based pricing to determine prices. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication at NQF Level 4.
  • The execution of supervisory tasks.
  • Mathematical Literacy at NQF Level 4. 

  • UNIT STANDARD RANGE 
    The applied competence expressed in this standard covers the knowledge and understanding of:
  • The fundamentals of cost management.
  • Techniques to analyse cost and price.
  • The traditional cost and pricing strategies.
  • The concept of total cost of ownership.
  • Target pricing as a concept for innovative pricing strategies. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the fundamentals of cost. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Types of cost are analysed to reflect the application of alternative costing systems. 

    ASSESSMENT CRITERION 2 
    The application of various costing systems within the supply chain are analysed indicating their advantages and disadvantages. 

    ASSESSMENT CRITERION 3 
    The concept of total cost of ownership is evaluated to determine its use and how to solve problems related to its application. 

    ASSESSMENT CRITERION 4 
    The process of developing a total cost of ownership system is evaluated to reflect its uses and the purpose of total cost of ownership data. 

    SPECIFIC OUTCOME 2 
    Use various mechanisms to manage the price of products and services. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The prices of products and services are managed by determining the impact of various market structures. 

    ASSESSMENT CRITERION 2 
    The impact of various economic conditions are utilised in the management of price of products and services. 

    ASSESSMENT CRITERION 3 
    The fundamental pricing strategy of a seller is used to manage the price of products and services. 

    ASSESSMENT CRITERION 4 
    The prices of products and services are managed in a way that reflects the impact of product specifications on price. 

    ASSESSMENT CRITERION 5 
    The management process reflects the way in which purchase volume and quantity discounts on price impacts on prices of products and services. 

    ASSESSMENT CRITERION 6 
    The producer price index is used to manage price in specific scenarios. 

    SPECIFIC OUTCOME 3 
    Use various cost analysis techniques to calculate the real cost of products and services. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Supplier costs are estimated using reverse price analysis. 

    ASSESSMENT CRITERION 2 
    Production cost scheduling is conducted to calculate the real cost of products and services. 

    ASSESSMENT CRITERION 3 
    The cost of products and services is evaluated through graphical analysis. 

    ASSESSMENT CRITERION 4 
    A break even analysis is conducted to reflect its importance in creating sustainable value. 

    ASSESSMENT CRITERION 5 
    A learning curve analysis is conducted to determine its influence on pricing strategies. 

    SPECIFIC OUTCOME 4 
    Use cost and target based pricing to determine prices. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of target pricing is interrogated to determine its influence on the determination of prices. 

    ASSESSMENT CRITERION 2 
    Cost based pricing is used to determine prices in specific scenarios. 

    ASSESSMENT CRITERION 3 
    The prerequisites for successful target and cost based pricing are identified and applied. 

    ASSESSMENT CRITERION 4 
    An integrated cost and pricing strategy is developed to suit specific scenarios. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Any institution offering learning that will enable achievement of this unit standard must be accredited by the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA at its discretion.
  • Moderation should encompass achievement of competence described in both individual unit standards as well as the integrated competence described in the qualification. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • The need for understanding cost fundamentals.
  • The role cast plays in pricing strategies.
  • What fixed cost is and where it comes from.
  • What variable cost is and where it comes from.
  • What semi variable cost is and where it comes from.
  • The calculation of total cost.
  • The different systems of classifying cost (direct cost, indirect cost, etc).
  • The application of the costing systems.
  • The advantages and disadvantages of using the various cost systems.
  • Practical examples of the use of the costing systems.
  • What is meant by strategic cost management.
  • How strategic cost management can be used as an approach to cost reduction.
  • What is meant by price analysis.
  • The impact of various market structures on coat and price management (Perfect competition, monopolistic competition, oligopolistic competition and perfect monopoly).
  • How to use the producer price index to track costs.
  • The role of various economic conditions in cost and price management.
  • The strategies that sellers use to calculate prices (cost plus pricing, rule of thumb pricing and buy in pricing).
  • The role of product specifications.
  • The role of quantity discounts and cash discounts.
  • What the producer price index is.
  • How the producer price index is calculated.
  • How the PPI can be used to determine prices.
  • How market changes can influence costs and prices.
  • How to estimate prices using reverse price analysis.
  • How to estimate prices using production cost schedules.
  • How to estimate prices using graphic analysis techniques.
  • How to do a break even analysis.
  • How to do a learning curve analysis.
  • What is meant by total cost of ownership.
  • What the concept is used for.
  • How to calculate total cost of ownership.
  • The advantages and disadvantages of using this concept.
  • How to develop a total cost of ownership (ID total cost items, map processes and ID functions, ID scope of the model, ID performance criteria, Document model and apply model).
  • How to use the TCO data.
  • What target based pricing is.
  • How this concept differs from traditional pricing methods.
  • How to generate a holistic cost and pricing strategy that suits the specific condition. 

  • 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:
  • Identify value creation opportunities through the use of optimum cost and pricing strategies. 

  • UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community during:
  • Determining product specifications. 

  • UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • Aligning activities to the most appropriate cost and pricing strategy. 

  • UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information when:
  • Collect, analyse and critically evaluate data regarding cost and pricing strategies to determine the levels of value creation for organisations. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion when:
  • The concept of target pricing is interrogated to determine its influence on the determination of prices. 

  • UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Presentations on selected cost and pricing strategies and the impact on the supply chan sustainability. 

  • 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:
  • Indicating how the cause and effect relationships of cost and pricing strategies impacts on the levels of value creation in organisations. 

  • 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 256432, "Create sustainable value through appropriate cost and pricing strategies", NQF Level 6, 15 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  96401   National Certificate: Export Administration  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  74149   National Certificate: Supply Chain Management  Level 5  NQF Level 05  Reregistered  2023-06-30  TETA 


    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. Academics Dynamics (Pty) Ltd 
    2. Aldabri 106 Institute for Quality Pty Ltd 
    3. BPL Academy 
    4. Brilliant Skills Development & Training Solutions 
    5. Centre for Logistics Excellence (Pty) Ltd 
    6. College of Production Technology 
    7. COMMERCE EDGE SOUTH AFRICA PTY LTD 
    8. Global Maritime Legal Solutions Pty Ltd 
    9. KVR TRAINING AND BUSINESS SOLUTIONS PTY LTD 
    10. Makwedeng Training 
    11. Metro Minds 
    12. Phephani Learnerships cc 
    13. School of Shipping 
    14. Skills Development Specialists 
    15. UKWAKHILE TRAINING 
    16. Y2K College 



    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.