Lesson 8.2.1

8.2.1 Added value Quiz: OCR Business, Unit 8

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 8.2.1, Added value: 20 multiple choice questions for the OCR Business (H431), Unit 8: Operations, written with Revision Ninja.

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The 20 questions

  1. How is added value calculated for a business?

    • Revenue plus profit
    • Sales minus wages
    • Selling price minus cost
    • Cost plus margin

  2. A cake sells for £20 using £6 of ingredients. What is the added value?

    • £120
    • £14
    • £26
    • £3.33

  3. Launching a completely new or improved good or service is known as what?

    • Product innovation
    • Process innovation
    • Cell production
    • Batch production

  4. Implementing a new or improved production or delivery method is called what?

    • Process innovation
    • Job production
    • Division of labour
    • Product innovation

  5. A firm makes a single custom-designed wedding dress for one customer. Which production method is this?

    • Job production
    • Batch production
    • Cell production
    • Flow production

  6. A bakery produces 50 white loaves, then cleans equipment to bake 50 brown loaves. Which method is used?

    • Job production
    • Batch production
    • Flow production
    • Custom production

  7. A car manufacturer produces thousands of identical cars continuously on an assembly line. Which method is this?

    • Job production
    • Flow production
    • Batch production
    • Cell production

  8. Breaking down a production process into small, repetitive, specialised tasks is known as what?

    • Division of labour
    • Research and development
    • Job rotation
    • Cell production

  9. What is a major disadvantage for workers resulting from high division of labour?

    • Monotony and boredom
    • Lower output levels
    • Higher wage costs
    • Increased unit costs

  10. A pharmaceutical company spends heavily to discover new life-saving drugs. What activity is this?

    • Research and development
    • Cell layout
    • Process innovation
    • Division of labour

  11. Dividing production into teams responsible for completing a full unit or process is called what?

    • Job production
    • Flow production
    • Cell production
    • Mass customisation

  12. How does increasing added value most directly benefit a business in a competitive market?

    • Increases material costs
    • Allows higher margins
    • Reduces total sales
    • Guarantees zero competition

  13. Which key characteristic distinguishes service production from physical goods production?

    • Tangibility
    • Intangibility
    • High inventory storage
    • Standardised assembly lines

  14. A firm sells 100 units at £15 each. Bought-in supplies cost £5 per unit. What is total added value?

    • £2,000
    • £1,500
    • £1,000
    • £500

  15. How does high national investment in research and development benefit a country's economy?

    • Lowers national exports
    • Drives economic growth
    • Increases structural unemployment
    • Decreases labour productivity

  16. An employee focuses solely on installing car doors in a factory. What is this practice called?

    • Job enlargement
    • Job enrichment
    • Product innovation
    • Specialisation

  17. Which operational objective directly focuses on reducing wasted time and materials during manufacturing?

    • Dependability
    • Flexibility
    • Environmental footprint
    • Efficiency

  18. A coffee shop redesigns its interior and improves customer service. How does this affect added value?

    • Increases added value
    • Decreases added value
    • Has no impact
    • Eliminates profit margin

  19. What is the main financial risk associated with funding extensive research and development projects?

    • Immediate cash inflows
    • Low failure rate
    • High initial cost
    • Guaranteed high returns

  20. What happens to unit costs when transitioning from job to flow production?

    • Unit costs increase
    • Unit costs double
    • Unit costs fluctuate
    • Unit costs decrease

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