Lesson 3.4.2

3.4.2 Analysing operational performance Quiz: AQA Business, Unit 4

20 questions

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Lesson 3.4.2, Analysing operational performance: 20 multiple choice questions for the AQA Business (7132), Unit 4: Operational management, written with Revision Ninja.

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The 20 questions

  1. What does labour productivity measure in an operational context?

    • Total labour cost
    • Units produced daily
    • Output per worker
    • Revenue per store
  2. How is unit cost calculated in operations management?

    • Total cost / output
    • Fixed cost / output
    • Total cost x output
    • Revenue / output
  3. What term describes the maximum potential output a business can produce in a given period?

    • Unit cost
    • Capacity
    • Capacity utilisation
    • Labour productivity
  4. Which formula is used to calculate capacity utilisation?

    • (Actual / maximum) x 100
    • (Cost / output) x 100
    • (Maximum / actual) x 100
    • (Output / workers) x 100
  5. Which measure would be used to compare output per worker across two factories?

    • Labour productivity
    • Gross profit margin
    • Capacity utilisation
    • Unit cost
  6. Which operational change directly increases labour productivity without increasing the total workforce size?

    • Hiring temporary staff
    • Better factory layout
    • Lowering product prices
    • Increasing buffer stocks
  7. A factory has a capacity of 10,000 units a month and produces 7,500 units. What is its capacity utilisation?

    • 7.5%
    • 75%
    • 25%
    • 133%
  8. Twelve workers produce 4,800 units in one week. What is the labour productivity per worker?

    • 400 units
    • 300 units
    • 4,000 units
    • 57,600 units
  9. A business's total costs are 90,000 for 3,000 units of output. What is the unit cost?

    • 30 per unit
    • 27 per unit
    • 300 per unit
    • 60 per unit
  10. If capacity utilisation falls while fixed costs remain unchanged, what happens to unit cost?

    • It decreases
    • It stays constant
    • It increases
    • It becomes zero
  11. Output per worker rises from 2,000 units to 2,400 units with the same 20 workers. What is the percentage rise in labour productivity?

    • 10%
    • 20%
    • 40%
    • 2%
  12. A firm has fixed costs of 60,000 and a variable cost of 8 per unit. It produces 10,000 units. What is its unit cost?

    • 6 per unit
    • 20 per unit
    • 8 per unit
    • 14 per unit
  13. Which operational metric best helps a manager decide whether to introduce a second work shift?

    • Gearing ratio
    • Capacity utilisation
    • Labour turnover
    • Market share
  14. What could explain why unit costs increase even though labour productivity improves?

    • Lower material costs
    • Reduced waste levels
    • Higher capacity utilisation
    • Higher wage rates
  15. What is the primary benefit of operating with spare capacity rather than at 100% utilisation?

    • Lower fixed costs
    • Flexibility for demand
    • Higher worker productivity
    • Lower unit costs
  16. A factory has fixed costs of 120,000 and variable costs of 5 per unit. Output rises from 20,000 to 30,000 units. What is the new unit cost?

    • 12 per unit
    • 8 per unit
    • 9 per unit
    • 11 per unit
  17. A factory has capacity of 50,000 units and output of 42,000. A new machine adds 10,000 units of capacity. What is the new capacity utilisation?

    • 84%
    • 60%
    • 120%
    • 70%
  18. What is a key drawback of using labour productivity as the sole performance metric?

    • Difficult to calculate
    • Applies to services
    • Ignores product quality
    • Ignores total output
  19. Output per worker rises from 300 to 345 units. What is the percentage increase?

    • 15%
    • 345%
    • 45%
    • 10%
  20. Why might a falling unit cost fail to indicate an improvement in operational efficiency?

    • Poorer product quality
    • Increased sales revenue
    • Higher labour productivity
    • Lower fixed costs

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