Lesson 3.4.2

3.4.2 Analysing operational performance Quiz: AQA Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

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

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

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

All AQA Business quizzes