Business 0450 · IGCSE · Production of goods and services

Production of goods and services — practice question

(a)[8]

Explain two advantages and two disadvantages of SA when it uses just-in-time (JIT) inventory control.

(b)[12]

Use the two extracts from SA’s income statements in Appendix 3. Do you think SA’s financial performance will have improved by the end of 2024? Support your view with suitable calculations.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Cuts the cost of holding inventory - because fewer sustainable cotton raw materials need to be kept in storage” …

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