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12 marksCosting and Break-Even Analysis

CAPE Management of Business Unit 2 · 2021 · Paper 2 · Question 1(c)

The managing director suggests reducing costs by outsourcing individual parts of external hard drives and focusing only on assembly.

Discuss THREE ways in which outsourcing may be disadvantageous to WFM.

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Other parts of this question

  1. 1(a)(i)Outline ONE feature of the 'just-in-time inventory management' approach.[2 marks]
  2. 1(a)(ii)Calculate the capacity utilization for WFM during the year 2018.[2 marks]
  3. 1(b)(i)Explain how WFM can adopt quality assurance to develop the quality of their products.[3 marks]
  4. 1(b)(ii)Explain how WFM can adopt quality control to develop the quality of their products.[3 marks]
  5. 1(b)(iii)Explain how WFM can adopt total quality management to develop the quality of their products.[3 marks]

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