1
Q
Define efficiency
A
Making the best use of resources within a business
2
Q
How do you calculate unit costs
A
Total costs
——————
Total output
3
Q
What are some benefits of improved efficiency
A
- labour productivity increases
- unit costs fall
- resources can be reallocated
- profit margins increase
- ability to charge lower prices
4
Q
What is waste
A
Anything that doesn’t add value to the product
5
Q
What are the 7 wastes a business is able to reduce on
A
- Transport
- inventory
- defects
- waiting
- over processing
- over production
- unnecessary movement of people
Paper 2 Business
flashcards
Decks in class (15)
# Cards
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2.2.3 Break Even12
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2.2.4 Budgets5
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2.3.1 Statement Of Comprehensive Incone And Profitability6
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2.3.2 liquidity10
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2.4.2 capacity utilization5
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3.3.1 quantitative sales forecasting10
-
3.5.2 Ratio Analysis8
-
3.1.4 porters five Forces20
-
2.2.2 Sales, Revenue And Costs6
-
2.3.3 Business Failure3
-
2.4.1 (B) Productivity5
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2.4.1 (C) Efficiency5
-
2.2.1 Sales Forecasting5
-
3.5.1 Interpreting Financial Statements4
-
Profits7
