Business Studies Multiple Choice Question – 8 December 2022

A factory produces 120 units with a workforce of 10 employees.

The number of employees stays the same but output increases by 20% and costs of production increase by 25%.

This means that?

Select ONE answer:

1. labour productivity rises and unit costs rise
2. labour productivity rises and unit costs fall
3. labour productivity falls and unit costs rise
4. labour productivity falls and unit costs fall

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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