AQA Business Studies for AS : Revision Guide by Ian Marcouse; Marie Brewer; Andrew Hammond

By Ian Marcouse; Marie Brewer; Andrew Hammond

This ebook has been written for AQA examination good fortune. greater than simply as aide to reminiscence, it choices out the main wisdom you wish for the AS examinations, indicates you the way to use your wisdom to the company context after which demonstrates how this is often built into an assessment. a number of perform questions written to AQA AS usual are integrated, and all have solutions within the again that will help you revise on your own or with Read more...

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Reducing a cost usually involves a tradeoff, for example lowering material costs may involve reducing the quality of a product or souring relationships with a supplier. Or reducing Measuring and increasing profit Meaning AQA Business Studies for AS Revision Guide 38 staffing costs could lead to lower motivation or productivity levels for the business. Moving to a cheaper location may reduce costs in the long run, but create a large extra cost in the short term as the costs of moving the operation are covered.

Managers will focus a great deal of time and energy on finding methods of raising productivity. Different measures of productivity There are different measures of productivity, as shown in the following table: Context Measure of productivity Manufacturer Units of output per worker per week Supermarket Average number of items Checkout ‘Zapped’ per minute Call centre Calls answered per hour Fruit picking Kilograms per day Insurance company Number of claims processed per week The problem with productivity is that it’s such a powerful idea that it can be misused.

Break-even charts will be of limited use if selling prices and cost levels are being roughly estimated, for example in a business start-up. Validity beyond the very near future? Break-even is a technique used to try to assess the firm’s future position. Many firms will be able to calculate how many units they must sell next week in order to break-even, but few will be in a stable enough environment to work out an annual break-even output. Test yourself 1 a) Calculate the number of units that would need to be sold to break-even if a firm sells its products for £5 per unit, has variable costs of £2 per unit and fixed costs of £6,000.

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