Unit 4 Key Terms

Question 1

Labour intensive

Answer 1

Operations process involving high proportion of employees

Question 2

Capital intensive

Answer 2

Operations process involving high proportion of capital equipment, automation and robotics

Question 3

Supply chain

Answer 3

A series of activities involved in taking initial resources to providing the final product

Question 4

Total costs

Answer 4

Fixed costs + variable costs

Question 5

Unit costs

Answer 5

Cost per unit

Question 6

Capacity

Answer 6

Maximum output of a business at a moment in time

Question 7

Capacity utilisation

Answer 7

Measures the existing output over a given period as a percentage of maximum output

Question 8

Labour productivity

Answer 8

The amount of output per employee