100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary - Unit cost and Efficiency $3.86   Add to cart
Quickly navigate to
Preview
  2.  
  3. AQA
  4.  
  5. Business Subjects
  6.  
  7. 3.4 Decision making and operational performance

Summary

Summary - Unit cost and Efficiency

 3 views  0 purchase
  • Course
  • 3.4 Decision making and operational performance
  • Institution
  • AQA

The document on Unit Cost and Efficiency explores operational efficiency in business operations, emphasizing how effectively resources like machinery, materials, and labor are utilized to maximize outputs. It introduces LUCC (Labour, Unit Cost, Capacity, Capacity Utilisation) as critical factors fo...

[Show more]

Preview 1 out of 3  pages

Document information

  • July 5, 2024
  • 3
  • 2023/2024
  • Summary

Subjects

  • unit cost
  • efficiency
  • labour productivity
  • capactiy utilisation
  • resource mix
  • outputs

Written for

  • A/AS Level
  • AQA
  • Business Subjects
  • 3.4 Decision making and operational performance
All documents for this subject (3)

Seller

avatar-seller
tamarawindham

Content preview

Unit Cost and Efficiency
Operational efficiency – shows how well a business uses it resources including machinery materials
and labour to maximise its outputs



LUCC – Ways to improve effeciency

Labour productivity

Unit cost

Capacity

Capacity Utilisation



Efficiency can be improved by:

- Increase capacity utilisation
- Increasing labour productivity
- Lean production techniques
- Choosing the optimal resource mix
- Using technology



Unit cost = Key indicator of efficiency and productivity of a business



Average cost per unit is calculated using:

Total Production costs∈ period( £)
Total output ∈a period(Units)


Labour vs Capital

Unit costs are closely linked to the relationship between labour and capital in operations

Labour intensive – labour resources

Capital Intensive – production relies on machinery

Examples:

Labour Capital
Food processing Oil extraction
Hotels and restaurants Car manufacturing
Hairdressing Transport infrastructure

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller tamarawindham. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.86. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$3.86
  • (0)
  Add to cart