NEW
Font size
WorksheetsCapacity utilisation
Total questions: 15
Worksheet time: 8mins
Average production costs tend to fall as output ____
deteriotes
decreases
drops
rises
When a business is operating below capacity it is said to have _____
floated capacity
spare capacity
excess capacity
overflow capacity
Capacity utilisation =
Current output / Maximum possible output x 100
Maximum possible output/Current output x 100
Current output + Maximum possible output x 100
Maximum possible output - Current output x 100
By working at ____ capacity it means that the business has no room in order to increase output
lower
medium
under
over
By working at over capacity staff are likely to be put under ________
a hierarchy of needs
fringe benefits
excessive pressure
gross misconduct
By not producing at maximum capacity it may mean that the business is unable to full exploit _____.
absenteeism
gross profit margins
diseconomies of scale
economies of scale
By not producing at full capacity it allows the business ____
to achieve lean production
some slack
to achieve maximum efficiency
to improve producivity
Way to improve capacity utilisation = ???
More time to service and fix machinery
Increase workforce hours
Sell machinery
Shorter factory opening hours
Capacity utilisation shows how much of the company's resources ____
need replacing in the foreseeable future
are worth on the statement of financial position
are profitable
are actually in use
To avoid ____, employees need to be trained to check quality at every stage of the process and to send work back if it is faulty.
output
waste
productivity
efficiency
If a competitor leaves the market, a business may look to ___
make staff redundant
decrease capacity utilisation
dispose of fixed assets
increase capacity utilisation
Sheffield Ltd produced 400,000 cars in 2021. Their factory, at full capacity, could produce 500,000 cars. What is their capacity utilisation?
40%
50%
60%
80%
Average production costs tend to fall as ____
output stays constant
output rises
output drops
output decreases
For most businesses, their ideal capacity utilisation is around ____
70%
100%
90%
100% +
Contracting out business functions and processes to third-party providers
Exsourcing
Prosourcing
Insourcing
Outsourcing
