5 production_efficiency_measures

5 production_efficiency_measures - tutor2u GCSE Business...

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tutor2u GCSE Business Studies Productivity & Efficiency Introduction A business should constantly be trying to improve its efficiency. In many markets, a business needs to be at least as efficient as its main competitors in order to be able to compete and survive in the long- term. A more efficient business will produce lower cost goods than competitors and may generate more profit possibly at lower prices Increasing efficiency will boost the capacity of a business, assuming there is no change in the number of inputs employed. The capacity of a firm refers to how much a business can produce during a specific period of time. Efficiency Where a business has efficient production, it is operating at maximum output at minimum cost per unit of output. Efficiency is, therefore, a measure of how well the production or transformation process is performing. However, this is not always easy to assess. There are several ways to measure efficiency
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This note was uploaded on 05/20/2010 for the course BUSINESS 6 Producti taught by Professor N/a during the Spring '10 term at Open Uni..

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5 production_efficiency_measures - tutor2u GCSE Business...

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