Analysing Operational Performance (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the formula for calculating unit cost?
What is the formula for calculating unit cost?
Total cost ÷ Units of output
A business has total costs of £80,000 and produces 4,000 units. What is the unit cost?
A business has total costs of £80,000 and produces 4,000 units. What is the unit cost?
£20 per unit
Why do unit costs fall when capacity utilisation increases?
Why do unit costs fall when capacity utilisation increases?
Fixed costs spread across more units
What happens to labour productivity when capacity utilisation rises (with constant workforce)?
What happens to labour productivity when capacity utilisation rises (with constant workforce)?
Labour productivity rises
What happens to unit costs when capacity utilisation decreases?
What happens to unit costs when capacity utilisation decreases?
Unit costs increase
A business reduces its workforce but maintains output. What happens to productivity per worker?
A business reduces its workforce but maintains output. What happens to productivity per worker?
Productivity increases
Why do businesses struggle during quiet periods?
Why do businesses struggle during quiet periods?
Costs per unit go up
What happens if a business increases workforce without increasing output?
What happens if a business increases workforce without increasing output?
Productivity falls
Which is NOT a benefit of understanding operational data?
Which is NOT a benefit of understanding operational data?
Guaranteeing future profits
If fixed costs are £50,000 and output rises from 10,000 to 20,000 units, what happens?
If fixed costs are £50,000 and output rises from 10,000 to 20,000 units, what happens?
Fixed cost per unit falls from £5 to £2.50