Capacity Utilisation (Edexcel 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
A factory produces 7,200 units when max capacity is 9,000. What is capacity utilisation?
A factory produces 7,200 units when max capacity is 9,000. What is capacity utilisation?
80%
What does capacity utilisation measure?
What does capacity utilisation measure?
How effectively resources are used
A coach with 52 seats carries 30 passengers. How many spare seats does it have?
A coach with 52 seats carries 30 passengers. How many spare seats does it have?
22 seats
Which commonly causes under-utilisation of capacity?
Which commonly causes under-utilisation of capacity?
Drop in demand from new competitors
Why does under-utilisation increase unit costs?
Why does under-utilisation increase unit costs?
Fixed costs spread across fewer units
What is a benefit of operating with spare capacity?
What is a benefit of operating with spare capacity?
Can respond to sudden demand increases
What problem occurs with over-utilisation of capacity?
What problem occurs with over-utilisation of capacity?
Cannot accept new orders due to limits
What does rationalisation involve?
What does rationalisation involve?
Cutting excess capacity permanently
What is outsourcing?
What is outsourcing?
Hiring externals for work done in-house
What does redeployment mean?
What does redeployment mean?
Moving resources to constrained areas