Finance

Question 1

cost leadership

Answer 1

to aim to have the lowest costs or be most competitive in the market

Question 2

good/service differentiation

Answer 2

distinguishing products from competitors

Question 3

standardised good/service

Answer 3

mass produced, uniform in design and quality eg. G.P, Coca-Cola

Question 4

customised good/service

Answer 4

niche market, vary to meet customer needs eg. physio, a logo

Question 5

perishable good

Answer 5

short life span as they are consumed quickly. They are relatively inexpensive and bought on a regular basis. eg. fruit and veg

Question 6

non-perishable good

Answer 6

more durable than perishable good, eg motor vehicles

Question 7

intermediate good

Answer 7

processed more than once eg. screws are made then used to build tv remote

Question 8

Interdependence

Answer 8

the mutual dependence that the key functions have on each other

Question 9

Globalisation

Answer 9

refers to the removal of barriers of trade between nations.

Question 10

technology

Answer 10

the design, construction and/or application of innovative devices, methods and machinery upon operations processes

Question 11

quality

Answer 11

how well designed, made + functional products are + the competency in which services are delivered

Question 12

cost-based competition

Answer 12

determining the break-even point + applying strategies to create cost advantages over competitors

Question 13

fixed costs

Answer 13

do not change regardless of level of B activity.

Question 14

variable costs

Answer 14

change in direct level of B activity (production).

Question 15

legal regulation

Answer 15

laws that influence how the business must be run eg. Work Health and Safety (WHS) Act 2011 (Cwlth).

Question 16

compliance costs

Answer 16

expenses asscoiated with meeting legal regulations ie. abiding by all laws

Question 17

environmental sustainability

Answer 17

sustainable use of renewable resources and a reduction in the use of non- renewable resources.

Question 18

corporate social responsibility

Answer 18

businesses doing more than just complying with the laws and regulations.
open and accountable business actions based on respect
for people, community/society etc.

Question 19

outsourcing

Answer 19

the use of outside specialists to undertake one or more key business functions.

Question 20

inputs

Answer 20

the resources used in the transformation (production) process.

Question 21

transformed resources

Answer 21

inputs that are changed or converted in the operations process.

Question 22

transforming resources

Answer 22

inputs that carry out the transformation process.

Question 23

transformation

Answer 23

the conversion of inputs to outputs

Question 24

lead time

Answer 24

the time it takes for an order to be fulfilled from the moment it is made.

Question 25

sequencing

Answer 25

the order in which activities in the operations process occur.

Question 26

scheduling

Answer 26

the length of time activities take within the operations process.

Question 27

Gantt Chart

Answer 27

type of bar chart that shows both the scheduled and completed work over a period of time.

Question 28

Critical Path Analysis

Answer 28

scheduling method that shows the shortest length of time it takes to complete all tasks necessary

Question 29

Computer aided design

Answer 29

allows businesses to create product possibilities from a series of input parameters.

Question 30

computer aided manufacturing

Answer 30

software that controls manufacturing processes

Question 31

task design

Answer 31

organising jobs for employees that are trained in that specific job classification.

Question 32

process layout

Answer 32

arrangment of machines and equipment by the function they perform

Question 33

monitoring

Answer 33

measuring planned performance against actual performance.

Question 34

control

Answer 34

when KPIs are measured against predetermined targers and corrective action is taken if required.

Question 35

improvement

Answer 35

systematic reduction of inefficiencies and wastage, etc

Question 36

continous improvement

Answer 36

ongoing commitment to achieving perfection (kaizen)

Question 37

outputs

Answer 37

the product, the end result

Question 38

customer service

Answer 38

how well the business meets and exceeds customer expectations

Question 39

warranties

Answer 39

promise made by a business to correct any defects/ in the good/service

Question 40

performance objectives

Answer 40

goals relating to particular aspects of the transformation process