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Terms in this set (7)
Each product is individually produced to specific requirements.
Workers often perform a variety of different tasks, which can help to maintain job satisfaction and high levels of motivation.
Businesses can charge a premium price for their products.
Suitable for the production of televisions, cars, soft drinks and most packaged foods.
Capital intensive production reduces labour costs and increases the business's productivity.
Workers' tasks can become repetitive and boring, which may lead to poor motivation.
Large quantities of identical products are produced continuously on an assembly line.
Suitable for the production of doughnuts, bread and handmade pottery.
products are produced in groups: a small group of one product is produced, then a small group of another product, and so on.
Requires a lot of storage space, as partly finished and finished products have to be moved physically from stage to stage throughout the production process.
A manufacturing defect may result in more than one product being ruined.
Revenue is equal to total costs.
Costs that do not vary with the quantity of output produced.
costs that vary with the quantity of output produced.
Total variable costs = unit variable costs X quantity
Fixed costs + variable costs
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