Unit 4 - Operations

Question 1

Unit costs

Answer 1

Unit costs = total costs / total output

Question 2

Labour productivity

Answer 2

Labour productivity = output per period / number of employees per period

Question 3

Capacity

Answer 3

Capacity = maximum level of production

Question 4

Capacity utilisation

Answer 4

Capacity utilisation = (actual output / maximum possible output) x 100