Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
Rafiq serves as the Operations manager in a small factory. The business produces a variety of soft drinks by using batch production. Last year, one of the 40 employees suggested an idea, and Rafiq successfully put in place just-in-time inventory control based on it. Since the business is planning to grow, Rafiq believes switching to flow production would be a sensible move.
(a)[2]
What does ‘cost of sales’ mean?
(b)[2]
Look at Table 1. Calculate: X; Y.
(c)[4]
Identify and explain two reasons why profit matters to this business.
(d)[6]
Identify and explain two advantages of using just-in-time inventory control for this business.
(e)[6]
Do you think this business ought to switch to flow production? 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: “The money a business pays to make or purchase the goods it sells.” …