Cambridge IGCSE · Business Studies (0450)

Production of goods and services: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Production of goods and services.

10 questions21 marksFree, no account

Question 1

1 mark

In which of the following industries would flow production be most commonly used?

Question 2

1 mark

Which statement correctly distinguishes Quality Assurance from Quality Control?

Question 3

1 mark

A small boutique company currently uses job production to make high-end, hand-carved wooden doors. They are considering switching to batch production to meet rising demand from local developers. What is the most likely outcome of this change?

Question 4

1 mark

Which of the following best describes batch production?

Question 5

1 mark

A furniture factory employs 25 workers who produce a total of 500 chairs in a 40-hour week. What is the labor productivity per worker per week?

Question 6

2 marks

State one potential drawback for a business that relies solely on automation in its production process.

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Question 7

3 marks

A factory employs \( 8 \) workers who produce a total of \( 3,200 \) units over a \( 40 \)-hour work week. Calculate the labor productivity per worker per week.

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Question 8

5 marks

Explain why a business transitioning to high levels of automation is likely to experience an increase in its break-even point.

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Question 9

2 marks

A clothing manufacturer uses quality control to ensure its products meet high standards.
(a) State what is meant by quality control.
(b) Identify one reason why identifying a fault at the end of the production line might be expensive for the manufacturer.

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Question 10

4 marks

A smartphone manufacturer is considering moving from labor-intensive to capital-intensive production.
(a) Explain the difference between these two methods.
(b) Analyze how this shift might affect the consistency of quality of the smartphones produced.

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