Demonstrate understanding of price determination for an organisation
This standard asks you to understand how organisations decide what price to charge for their products or services. You need to describe how a price was set, explain what factors might change that price, and justify whether the price is a good decision for the business. You'll use real business information and theories like supply and demand to back up your ideas.
You describe how a price was set using real information and one business concept, showing you understand the basics of how pricing works.
You explain how internal or external changes could affect the price, discuss different pricing options, and support your thinking with information and a business concept.
You justify whether the price is the right choice by weighing up the evidence and concept, and you discuss both the good and bad consequences the price has on the organisation and everyone affected by it.
Standards typically taken alongside or after this one. Same subject, grouped by level.