Operations management

Table of Contents

1. Topic pack - Operations management - introduction
2. Operations Management (OM) - Introduction
3. 5.1 Production methods notes
4. 5.1 Production methods - questions
5. 5.2 Costs and revenues - notes
6. 5.2 Costs and revenues - questions
   1. Cost centres and profit centres - short answer questions
   2. Methods of costing - short answer questions
   3. Contribution costing - numerical questions
7. 5.3 Break-even analysis - notes
8. 5.3 Break-even analysis - questions
9. 5.3 Break-even analysis - simulations and activities
10. 5.4 Quality assurance - notes
11. 5.4 Quality assurance - questions and activities
12. 5.5 Location - notes
13. Innovation - notes (HL only)
14. 5.6 Innovation - questions
15. 5.7 Production planning - notes
16. 5.7 Production planning - questions
17. 5.8 Project management - notes (HL only)
18. 5.8 Project management - questions (HL only)
19. Print View

Methods of costing - short answer questions

Question 1

Define the term 'contribution'.

Question 2

'A firm that makes more than one product does not know what they cost to make, but knows exactly how much profit the firm has made.' Discuss.

Question 3

Explain why contribution is as important to most firms as profit.

Question 4

Analyse the reasons why a firm may sell a product for less than its total cost of production.

Question 5

If you ran a supermarket, discuss how you could use the concept of contribution to maximise your profits.