Uses of operational data

Question 1

State 3 ways to increase the efficiency of labour productivity

Answer 1

• Use data to set targets and motivate workers
• Use data to measure the efficiency of workers
• Use to identify training needs of the workers

Question 2

When may unit cost data be uses?

Answer 2

• Used to set prices based on profit margin target
• Use to make decisions about which products to produce
• Use alongside Variable costs to analyse distribution of overheads

Question 3

How can capacity utilisation data be used?

Answer 3

• Setting targets for output
• Identify when a business should decrease capacity (retrenchment)
• Identify when a business should increase capacity (growth)