IGCSE Business Chapter 18 Review

The making of a product or service is known as

• production

• Input

• Output

• Production department

A business combines inputs to make products or services.

• True

• False

the difference between the selling price of a product and the cost of the materials used to make it.

• inputs

• outputs

• added value

The aim of the business is to produce value-added outputs that are worth more than its inputs.

• True

• false

The advantage of Just In Time Production is ...

• need so many spaces

• need much storage

• less space

• more planning

• less training requirement

Is the following sentences True or False?



Just In Time depends on harmonious partnership between a company and its suppliers.

• True

• False

One of the benefits of increasing productivity is:

• more workers will be employed

• total production will increase with the same number of workers

• average costs will remain the same

• fewer raw materials will be needed to produce the same level of output

In inventory ordering 'lead time' means:

• the time taken to deliver goods from the firm to the consumer

• the time between ordering inventories and their delivery

• the time taken to produce goods after the raw materials arrive

• the time taken for inventories to fall from maximum level to the reorder level

Which one of the following would be an example of 'lean production'?

• producing a greater variety of goods with an increased workforce

• holding very low stock levels such as with Just-in-Time methods

• making smaller quantities of goods than previously

• buying the latest equipment to increase output even though it is not used all of the time

Which one of the following is NOT considered to be a waste?

• over production

• excess inventory

• over processing

• higher productivity