iAS Business - Resource management

What is an advantage of FLOW PRODUCTION

• Production is efficient

• Products can be made to order

• Staff are motivated

• Machinery costs a lot

What is a disadvantage of BATCH PRODUCTION?

• Products can be changed between batches

• Using machinery increases productivity

• A mistake may lead to the whole batch being scrapped

• Staff specialise and become efficient

What is a disadvantage of JOB PRODUCTION?

• Production costs are higher

• Accommodate one-off orders

• Staff are motivated by the variety of work

All of the following are advantages of Capital intensive except________

• Goods are produced at a greater speed

• Items produced are standardised

• Increased unemployment

• Greater number of goods produced

producing a one-off item specially designed for the customer

• mass customisation

• flow production

• batch production

• job production

What is the capacity utilisation rate for a factory that can produce 20,000 units per month with an actual output of 18,000 units per month

• 90%

• 80%

• 111%

• 20%

a factory that can make 6000 units per week but actually produces 4500 units has a capacity utilisation of

• 25%

• 75%

• 40%

• 60%

If a business is working at 60% capacity utilisation and is producing 9,000 units, what is its capacity

• 6,333 units

• 20,000 units

• 15,000 units

• 9,000 units

A disadvantage of a business having significant spare capacity is that:

• Higher return on investment in fixed assets

• Employees may become de-motivated and bored

• Business can respond to sudden increases in demand

• Fixed costs are a low percentage of total costs

When is the capacity utilisation rate for a business likely to fall?

• During a prolonged industrial dispute

• When there is a sudden increase in demand

• During peak trading sessions in the year

• When employees are asked to work overtime