A-Level Business (Edexcel) Theme 2.4.1 to 2.4.3

Front

What is productivity?

Back

The amount of output per worker or machine over a given period

Front

Which of the following is NOT a method of improving productivity? Training employees, Increasing wages without changing processes, Investing in technology, Improving working conditions

Back

Increasing wages without changing processes

Front

What does capacity utilization measure?

Back

The proportion of total available output being used

Front

What is the formula for labour productivity?

Back

Total output ÷ Total number of workers

Front

Which production method is best suited for businesses producing customized, unique products?

Back

Job production

Front

Which of the following is a key characteristic of flow production? High levels of customization, Production in small, specific batches, Continuous production process, High labour costs

Back

Continuous production process

Front

If a factory is producing at 70% capacity utilization, what does this mean?

Back

It is using 70% of its maximum production potential

Front

How is capacity utilization calculated?

Back

(Actual output ÷ Maximum possible output) × 100

Front

A business operating at low capacity utilization is likely to experience: Higher unit costs, Greater efficiency, Increased employee motivation, Higher customer satisfaction

Back

Higher unit costs

Front

What is a common risk of operating at full capacity?

Back

Inability to meet unexpected demand