Business 7115 · O Level · Production of goods and services
Production of goods and services — practice question
SSG produces mobile (cell) phones by batch production. Maintaining quality control is essential. SSG employs 130 workers, and every one of them is given on-the-job training. The Marketing Manager is studying cost and output figures for product X. An extract is provided in Table 1.1. Because product X is at the maturity stage of its product life cycle, SSG is thinking about possible extension strategies.
(a)[2]
Define ‘on-the-job training’.
(b)[2]
Calculate total variable cost per month. Show your working.
(c)[4]
Identify four factors a business should consider when deciding which method of production to use.
(d)[6]
Explain one advantage and one disadvantage to SSG of using quality control.
(e)[6]
Do you think 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 in the workplace, while watching or shadowing an experienced employee” …