Unit Cost
Unit Cost in a Nutshell Unit cost is the average cost of producing one item, found by dividing total costs by output. It falls as output rises because fixed costs are shared…
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10 min
Spec point: A-Level AQA – 3.4.2 Analysing Operational Performance
Every note that covers this specification point.
Resource Utilisation
Resource Utilisation in a Nutshell Resource utilisation is how fully a business uses its resources, including staff, machines, buildings and money. It is usually measured as capacity utilisation: actual output as a…
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9 min
Capacity Utilisation
Capacity Utilisation in a Nutshell Capacity utilisation is the proportion of a business’s maximum possible output that it actually uses, expressed as a percentage. High utilisation spreads fixed costs and lifts profit,…
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11 min
Productivity
Productivity in a Nutshell Productivity measures how efficiently a business turns inputs into outputs. It is always output per unit of input, such as cars per worker per year or meals served…
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11 min
Capacity
Capacity in a Nutshell Capacity is the maximum output a business can produce in a given period using its current resources. It is set by staff, machinery, space and opening hours, and…
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10 min