Lod Test Flashcards
1
Q
Economies of scale definition
A
The cost advantages that a business can achieve as it increases production, leading to lower average costs per unit
2
Q
Diseconomies of scale
A
When excessive growth leads to higher costs e.g communication issues, reduced employee motivation
3
Q
Capacity utilisation
A
The extent to which a business is using its productive capacity
4
Q
Capacity utilisation formula
A
Capacity utilisation = (Actual output/Maximum possible output) x 100
5
Q
High CU
A
Efficient but may lead to stress and overworking
6
Q
Low CU
A
Underutilised resources, higher unit costs
7
Q
Quality
A
Meeting customer expectations and ensuring products/services are free from defects
8
Q
Methods of quality management
A
Quality control, quality assurance, total quality management, kaizen, quality circles
