BS REVIEW

continuous improvement

identify two types of waste that can occur in production

the inventory held to deal with uncertainty in customer demand and deliveries of supplies

products are made specifically to order

• lean production

• flow production

• batch production

• job production

total cost of production divided by total output

• variable cost

• average cost

• fixed cost

• total cost

identify how a business uses cost data to help make business decisions

the level of sales at which total cost = total revenue

the amount a business earns from the sale of its products

specialist machines are used to produce items in a continuous flow with workers so reducing unit costs

factors that lead to an increase in average costs as a business grows beyond a certain size