Theme 2 AO1 Flashcards
What is the gross profit calculation?
Total revenue - Total variable costs
What is the operating profit calculation?
Gross profit - Total fixed costs
What is the net profit calculation?
Operating profit - interest - exceptional expenses.
What is the consumer protection act of 1987?
Consumers are entitled to receive goods or services of a good quality in good working order.
What is flow production?
What is job production?
What is cell production?
What is batch production?
What is capacity utilisation?
How can a business improve capacity utilisation?
What is the capacity utilisation calculation?
What is lean production?
How is competitive advantage gained from lean production?
How do exchange rates affect businesses?
How does consumer protection affect businesses?
By trying to uphold quality, in line with the consumer act, costs are likely to rise.
