Business Studies CP3

1.    The difference between the selling price of a product and the cost of making it, is known as _____.

• Production

• Input

• Added value

• Natural resources

Answer explanation

The correct choice is 'Added value' because it represents the difference between the selling price and the cost of making a product, indicating the value added during production.

What type of resources are land, oil, coal, water and gold?

• Natural resources

• Human resources

• Raw resources

• Capital

Answer explanation

Land, oil, coal, water, and gold are classified as natural resources due to their origin in the environment and their essential role in human activities.

What is a benefit of productivity?

• Value-added input is created

• Output is part of the production process

• Increased output with minimal input

• Decreased output with maximum input

Answer explanation

Productivity benefits from increased output with minimal input, allowing for efficient resource utilization.

The production department uses computer systems to help the production process.

 

Which business department helps with this?

• IT department

• Finance department

• Marketing department

• HR department

Answer explanation

The IT department is responsible for managing computer systems, which are used by the production department to aid the production process.

One of the responsibilities of the production department is to buy the necessary inputs for the production process. It also needs to check that the right amount of output is available.

 

Which function of the production department is this?

• Production and planning

• Purchasing and stock control

• Design and technical support

• Operations

Answer explanation

The correct function of the production department described is Purchasing and stock control, as it involves buying necessary inputs and checking output availability.

Which method of production is used when similar products are made together in groups?

• Batch Production

• Market Production

• Flow Production

• One-off Production

Answer explanation

Batch Production is used when similar products are made together in groups, allowing for efficient production of a specific set of items before switching to another set.

Customers can choose different toppings and bases when they order pizza from Pizza Hut.

 

Which method of production is used?

• Automated assembly

• Handcrafted

• Mass customization

• Job production

Answer explanation

The correct choice is Job production because customers can customize their pizza toppings and bases, indicating a unique product made to order.

What type of business cost(s) remain the same regardless of output?

• Marginal costs

• Total costs

• Fixed costs

• Variable costs

Answer explanation

Fixed costs remain the same regardless of output in a business, unlike variable costs which change with production levels.

What happens when a business makes break-even?

• Profit is maximized

• Business shuts down

• Debt is incurred

• No profit or loss is incurred.

Answer explanation

When a business makes break-even, it means that no profit or loss is incurred. This indicates that the revenue equals the total costs, resulting in a balanced financial state.

Trendy Tablets produces 40,000 tablets per day and employees 20 workers.

 

What is the labour productivity for Trendy Tablets?

• 2,000 tablets per worker per day

• 10,000 tablets per worker per day

• 30,000 tablets per worker per day

• 1,500 tablets per worker per day

Answer explanation

The labor productivity is calculated by dividing the total tablets produced per day (40,000) by the number of workers (20), resulting in 2,000 tablets per worker per day. Therefore, the correct answer is 2,000 tablets per worker per day.