Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
Javid is a company which produces a variety of luxury chocolates by using batch production. During the last year, profit has decreased because competition has grown. To reduce costs, the Finance Director has proposed that the company brings new technology into the production process. The Human Resources Director is uncertain that workers would gain from the introduction of new technology.
(a)[2]
What does the term ‘batch production’ mean?
(b)[2]
Identify two advantages for the company of using new technology, apart from reducing costs.
(c)[4]
Identify and explain two reasons why the quality of chocolates could matter to this company.
(d)[6]
Identify and explain two problems that a decrease in profit might create for the company.
(e)[6]
Do you think that the introduction of new technology would benefit Javid’s workers? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Items are produced in sets, with one set finished before the next begins” …