Calculation of Operations Data (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 does capacity represent for a business?
What does capacity represent for a business?
Max production at full output
What is the formula for capacity utilisation?
What is the formula for capacity utilisation?
(actual output ÷ max output) × 100
A firm produces 6,000 units with max capacity of 8,000. What is capacity utilisation?
A firm produces 6,000 units with max capacity of 8,000. What is capacity utilisation?
75%
What is the formula for labour productivity?
What is the formula for labour productivity?
output per period ÷ no. of employees
If 50 workers produce 5,000 units, what is labour productivity?
If 50 workers produce 5,000 units, what is labour productivity?
100 units per worker
What is the formula for unit cost?
What is the formula for unit cost?
total cost ÷ units of output
If total costs are £90,000 for 4,500 units, what is the unit cost?
If total costs are £90,000 for 4,500 units, what is the unit cost?
£20
What happens to unit costs when capacity utilisation increases?
What happens to unit costs when capacity utilisation increases?
Unit costs fall
What happens to labour productivity when capacity utilisation increases (same workforce)?
What happens to labour productivity when capacity utilisation increases (same workforce)?
Labour productivity rises
What happens to productivity if a business maintains output with fewer employees?
What happens to productivity if a business maintains output with fewer employees?
Productivity increases