Lesson 3.4.2

3.4.2 Analysing operational performance Quiz: AQA Business, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.4.2, Analysing operational performance: 20 multiple choice questions for the AQA Business (7132), Unit 4: Operational management, written with Revision Ninja.

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The 20 questions

  1. Labour productivity is best defined as:

    • Total revenue divided by the number of managers
    • Output per worker, or per hour of labour
    • The number of hours worked by all staff in a month
    • Wages paid per unit of output

  2. Unit cost is calculated as:

    • Total revenue divided by the number of units produced
    • Total cost divided by the number of units produced
    • Variable cost per unit multiplied by fixed costs
    • Fixed costs divided by total revenue

  3. Capacity refers to:

    • The amount of cash held in the bank at the end of a month
    • The total sales revenue earned in a year
    • The maximum output a business can produce in a given period
    • The total number of employees the business is legally allowed to hire

  4. Capacity utilisation measures:

    • The ratio of fixed costs to variable costs
    • The percentage of workers who take sick leave
    • The proportion of profit reinvested in capital
    • Actual output as a percentage of maximum possible output

  5. Which measure would be used to compare output per worker across two factories?

    • Labour productivity
    • Gross profit margin
    • Capacity utilisation
    • Unit cost

  6. Which change would most directly increase labour productivity without adding any workers?

    • Redesigning the production layout so workers spend less time moving between tasks
    • Adding more management layers to supervise each worker
    • Cutting training so that workers focus on immediate output
    • Reducing the output target so that workers work more slowly

  7. A factory has a capacity of 10,000 units a month and produces 7,500 units. What is its capacity utilisation?

    • 7.5%
    • 75%
    • 25%
    • 133%

  8. Twelve workers produce 4,800 units in a week. What is the labour productivity per worker per week?

    • 480 units per worker per week
    • 12 units per worker per week
    • 4,800 units per worker per week
    • 400 units per worker per week

  9. A business's total costs are 90,000 for 3,000 units of output. What is the unit cost?

    • 30 per unit
    • 27 per unit
    • 300 per unit
    • 60 per unit

  10. A factory's capacity utilisation falls from 80% to 60% with fixed costs unchanged. What happens to unit cost?

    • It rises, because fixed costs are spread over fewer units
    • It stays the same, because fixed costs are unaffected
    • It falls, because fewer units are produced
    • It falls to zero, since variable costs disappear

  11. Output per worker rises from 2,000 units to 2,400 units with the same 20 workers. What is the percentage rise in labour productivity?

    • 10%
    • 20%
    • 40%
    • 2%

  12. A firm has fixed costs of 60,000 and a variable cost of 8 per unit. It produces 10,000 units. What is its unit cost?

    • 6 per unit
    • 20 per unit
    • 8 per unit
    • 14 per unit

  13. A manager wants to decide whether to add a second shift. Which data would best inform this decision?

    • The number of shareholders in the business
    • The business's historical logo designs
    • The colour of the factory's staff uniforms
    • Capacity utilisation and the trend in output and demand

  14. Labour productivity rises but unit cost also rises. What is the most likely explanation?

    • Input prices such as wages or materials rose faster than productivity improved
    • Unit costs are not affected by labour in any case
    • Capacity must have fallen to zero
    • Productivity increases always lower unit costs by the same amount

  15. Evaluate: what is the strongest argument that low capacity utilisation can be acceptable?

    • Capacity utilisation has no link to costs or demand
    • Low capacity utilisation is a sign of perfect efficiency
    • Spare capacity lets a business meet sudden increases in demand and avoid lost sales, though it raises unit costs
    • Low capacity utilisation always improves profit

  16. A factory has fixed costs of 120,000 and variable costs of 5 per unit. Output rises from 20,000 to 30,000 units. What is the new unit cost?

    • 12 per unit
    • 8 per unit
    • 9 per unit
    • 11 per unit

  17. A factory has capacity of 50,000 units and output of 42,000. A new machine adds 10,000 units of capacity. What is the new capacity utilisation?

    • 84%
    • 60%
    • 120%
    • 70%

  18. A manager argues that labour productivity is the best measure of a factory's performance. What is the strongest response?

    • Productivity measures only the wages paid to staff
    • Productivity cannot be calculated from output data
    • Productivity is the only measure needed because it covers every aspect of performance
    • Productivity ignores quality, cost and capacity, so it should be used alongside other measures

  19. Output per worker rises from 300 to 345 units. What is the percentage increase?

    • 15%
    • 345%
    • 45%
    • 10%

  20. Why might a falling unit cost not always mean better operational performance?

    • Unit cost is calculated from revenue, so it cannot change with costs
    • Unit cost can fall because of overproduction or lower quality, so it must be read alongside quality and other measures
    • Falling unit costs mean capacity utilisation must be 100%
    • Unit cost always measures product quality directly

All AQA Business quizzes