Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
|
what is efficiency? |
is all about making the best possible use of the business resources. a business will want to use its materials labour and capital as effciently as possible |
|
|
how to measure effciency? |
businesses often use costs as a measure of effciency. production is said to be effcient if 'average costs are minimised' |
|
|
what does the average cost curve for a business show? |
this shows that average costs start to fall, reach a minimum at £20 when resources are used most effciently and rise again. if the busines only made 200 units production would not be effcient as they would cost £30 eahc to make. |
|
|
what are the factors affecting effciency? |
- standardisation -outsourcing - relocating - downsizing - delayering -investing in new technology - lean production- use fewer resources in production -kaizen- contious improvement - just in time production- minimising stock held by business and costs associated with stock holding. |
