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Business Studies [IGCSE]

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  • Producing a good or service which meets customer expectations.
    Quality
  • List 4 types of waste.
    Overproduction, waiting, transportation, unnecessary inventory, defects, overprocessing
  • Checking quality at each stage of the production process.
    Quality assurance
  • Larger business gain by raising more capital through lower interest rates from banks.
    Financial economies of scale
  • Insurance is an example of variable cost. True or false.
    False
  • Two reasons why businesses hold inventory.
    Unexpected demand, unreliable suppliers, economies of scale, seasonal changes
  • Cost that do not vary in the short run with the number of items sold or produced.
    Fixed costs
  • Large quantities of products are produced in a continious process.
    Flow production.
  • Two ways businesses can increase productivity.
    New technology, motivate employees, automation, improve quality.
  • Continiuous improvements of production at each stage of the production process usually through ideas and strategies provided by employees.
    TQM
  • Two factors affecting which method of production to use.
    Nature of the product, size of the market, nature of demand, size of the business
  • A single product is made at a time.
    Job production
  • Total revenue = Total cost
    Break-even point
  • The output measured against the input used to create it.
    Productivity
  • Two advantages of using Kaizen.
    Reduced space, increase producivity, improved factory layout
  • Using specialised managers to reduce average costs
    Managerial economies of scale.
  • Two limitations of break-even charts:
    Assumes all goods are sold, does not take into account other factors, assumes costs and revenues can be drawn with straight lines.
  • Quantity sold X Price =
    Revenue
  • Any two technological methods used in businesses.
    Mechanization, Automation, CAD, CAM, CIM ect
  • Two ways a break- even chart can be useful:
    Safety of margin, profit/loss. accurate forecasting
  • Income tax is an example of variable cost. True or false.
    True
  • Total cost of production divided by total output.
    Average cost per unit
  • A quantity of one product is made, then another quantity is made.
    Batch production
  • As the business expands, their average cost increases.
    Diseconomies of scale
  • Chcecking quality end of the production process
    Quality control
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