Stock Control and Resource Management

Just In Time is a lean production technique, It involves ordering a product right as it is about to run out, but before the business has to stop manufacture, this allows a business to work effectively when creating a product that requires a lot of parts and accessories. Raw Materials Work in Progress Finished Goods Bought from suppliers Supplier may not be able to meet demand Supplier could not raise prices Used in assembly or as ingredients Parts for assembly Not Sellable Costs business money to make into product May be a slow process… Continue reading Stock Control and Resource Management

Common AS-Level Business Studies Equations

Here is a list of routinely forgotten equations for Business Studies, make sure to memorise them. Equations Total Contribution = Total revenue – Total variable cost Contribution per unit = Selling price per unit – Variable cost per unit or (for total contribution) Contribution per unit x Number of units sold Profit = Total contribution – Fixed cost Break-even Output = Fixed cost / Contribution per unit What do they mean? Contribution is useful for a business to be responsible for a range of products, it allows them to calculate how much money they make on a sale. The Break-even charts… Continue reading Common AS-Level Business Studies Equations