Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
SSG makes mobile (cell) phones through batch production. Maintaining quality control matters. SSG employs 130 workers, and every one of them gets on-the-job training. The Marketing Manager is studying cost and output information for product X. Table 1.1 shows an extract. Because product X is now at the maturity stage of the product life cycle, SSG is weighing up possible extension strategies.
(a)[2]
Define ‘on-the-job training’ briefly.
(b)[2]
Calculate total variable cost for one month. Show your working.
(c)[4]
Identify four factors that a business should think about when choosing which production method to use.
(d)[6]
Explain one advantage and one disadvantage of quality control for SSG.
(e)[6]
Evaluate whether adding new features to a product is the best extension strategy for a manufacturing business to use. 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: “Training at the workplace while watching or shadowing an experienced employee” …