Business 0450 · IGCSE · Production of goods and services
Production of goods and services — practice question
KPX makes computers. The business brings in 60% of its raw materials from overseas. The Operations Director is looking at ways to apply lean production methods in KPX’s factory. The Finance Director is examining KPX’s financial information to work out the amount of its expenses. An extract appears in Table 1.1.
(a)[2]
Identify two reasons that may lead a business to import raw materials.
(b)[2]
Calculate KPX’s expenses in 2024. Show your working.
(c)[4]
Outline two ways the Finance Director of KPX could use the financial data in Table 1.1.
(d)[6]
Explain two lean production methods that KPX could use.
(e)[6]
Explain two reasons why profit matters to a business. Which reason is likely to be the most important? 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: “Unavailable / only a limited supply in the home country” …