iGCSE Business Unit 4 Revision

to produce a good or service which meets customer expectations

difference between the selling price and the price of inputs

fixed costs

the basic physical and organizational structures and facilities needed for the operation of a society or enterprise

The factors that lead to a reduction in average costs as a business increases in size.

average cost per unit x output

small groups of identical products are made

goods are usually specialised, no two goods are the same

buying advanced equipment or utilise specialised methods of production thereby increasing efficiency.

break even is...

When a large business can obtain a lower rate of interest or raise capital at a lower cost.

the quantity of goods and services that can be produced by one worker or by one hour of work

continuous improvement

When a large business can afford to hire specialists thereby increasing efficiency.

growth to a global or worldwide scale; the shrinking of the world

checking for the quality standards throughout the production process

large quantities of a product are made in a continuous process

Capital Intensive Production