Question 1
6 marksWhich one of the following businesses is most likely to use job production?
- A A business bottling 10 000 bottles of spring water each hour
- B A business making a one-off sculpture for a town centre
- C A business assembling identical televisions on a production line
- D A business packing frozen pizzas for supermarkets
Which one of the following is a feature of flow production?
- A Each product is finished before work on the next one begins
- B Each product is made to the individual requirements of a customer
- C Products move continuously from one stage of production to the next
- D Workers each complete every stage of the product themselves
Identify two ways in which a business could improve the efficiency of its production.
Table 1 shows information about one week's production at a factory that makes garden planters using flow production.
Table 1
| Production data for one week | |
|---|---|
| Number of planters produced | 12 000 |
| Total fixed costs | £18 000 |
| Variable cost per planter | £2.50 |
Using Table 1, calculate the average unit cost of producing one planter. Show your workings.