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CAPE Management of Business Unit 2 · 2018 · Paper 2 · Question 1(a)(ii)

Tech Plus is a computer build and repair store that expanded into mobile device repairs in 2015. While mobile repairs proved more profitable, neglect of the computer business led to lower quality, falling production rates, reduced profits, and increased indirect costs.

Define the term 'productivity'.

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Other parts of this question

  1. 1(a)(i)Define the term 'indirect cost'.[2 marks]
  2. 1(b)Identify THREE quality assurance strategies and explain how Tech Plus could use EACH of these strategies to improve the quality of its services.[9 marks]
  3. 1(c)Discuss THREE ways in which the business could reduce the rising indirect operating costs.[12 marks]

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