Cambridge AS level business
Questions and Answers Updated
2026
AddedBvalueB-
BAnswerBtheBdifferenceBbetweenBtheBcostBofBpurchasingBrawBmaterialsBandBtheBpric
eBtheBfinishedBgoodsBareBsoldBfor.
intellectualBcapitalB-
BAnswerBintangibleBcapitalBofBaBbusinessBthatBincludesBhumanBcapitalB(wellBtrainedBa
ndBknowledgeableBemployees),BstructuralBcapitalB(databasesBandBinformationBsystems)
BandBrelationalBcapitalB(goodBlinksBwithBsupplierBandBcustomers).
productionB-
BAnswerBproductionBisBtheBprovisionBofBaBproductBorBserviceBtoBsatisfyBconsumerBw
antsBandBneeds.BtheBprocessBinvolvesBfirmsBaddingBvalueBtoBaBproduct.
productivityB-
BAnswerBproductivityBisBtheBoutputBmeasuredBagainstBtheBinputsBusedBtoBcreateBit.Bi
tBisBusedBtoBmeasureBtheBefficiencyBofBaBbusiness,BinBorderBtoBkeepBtradingBandBgai
nBprofit.
levelBofBproductivityB-BAnswerBtheBnumberBofBunitsBproducedBduringBaBtimeBperiod
FORMULAB:BlabourBproductivityB(numberBofBunitsBperBworker)B-
BAnswerBtotalBoutputBinBaBgivenBtimeBperiod/totalBworkersBemployed
FORMULAB:BcapitalBproductivityB-BAnswerBoutput/capitalBemployed
FormulaB:BlabourBcostBperBunitB-BAnswerBannualBpay/labourBproductivity
efficiencyB-BAnswerBproducingBoutputBatBtheBhighestBrationBofBoutputBtoBinput
, effectivenessB-
BAnswerBmeetingBtheBobjectivesBofBtheBenterpriseBbyBusingBinputsBproductivelyBtoB
meetBcustomersBneeds.
labourBintensiveB-
BAnswerBinvolvingBaBhighBlevelBofBlabourBinputBcomparedBwithBcapitalBequipment
capitalBintensiveB-
BAnswerBinvolvingBaBhighBquantityBofBcapitalBequipmentBcomparedBwithBlabourBinput
inventoryB(stock)B-
BAnswerBmaterialsBandBgoodsBrequiredBtoBallowBforBtheBproductionBandBsupplyBofBp
roductsBtoBtheBcustomer.
economicBorderBquantityB(EOQ)B-BAnswerBtheBoptimumBorBleast-
costBquantityBofBstockBtoBre-orderBtakingBintoBaccountBdeliveryBcostsBandBstock-
holdingBcosts.
bufferBinventoriesB-
BAnswerBtheBminimumBinventoryBlevelBthatBshouldBbeBheldBtoBensureBthatBproductio
nBcouldBstillBtakeBplaceBshouldBaBdelayBinBdeliveryBoccurBorBshouldBproductionBrates
Bincrease.
re-orderBquantityB-BAnswerBtheBnumberBofBunitsBorderedBeachBtime
leadBtimeB-
BAnswerBtheBnormalBtimeBtakenBbetweenBorderingBnewBstocksBandBtheirBdelivery
just-in-timeB-
BAnswerBthisBinventoryBcontrollingBmethodBaimsBtoBavoidBholdingBinventoriesBbyBreq
uiringBsuppliesBtoBarriveBjustBasBtheyBareBneededBinBproductionBandBcompletedBprod
uctsBareBproducedBtoBorder.
Questions and Answers Updated
2026
AddedBvalueB-
BAnswerBtheBdifferenceBbetweenBtheBcostBofBpurchasingBrawBmaterialsBandBtheBpric
eBtheBfinishedBgoodsBareBsoldBfor.
intellectualBcapitalB-
BAnswerBintangibleBcapitalBofBaBbusinessBthatBincludesBhumanBcapitalB(wellBtrainedBa
ndBknowledgeableBemployees),BstructuralBcapitalB(databasesBandBinformationBsystems)
BandBrelationalBcapitalB(goodBlinksBwithBsupplierBandBcustomers).
productionB-
BAnswerBproductionBisBtheBprovisionBofBaBproductBorBserviceBtoBsatisfyBconsumerBw
antsBandBneeds.BtheBprocessBinvolvesBfirmsBaddingBvalueBtoBaBproduct.
productivityB-
BAnswerBproductivityBisBtheBoutputBmeasuredBagainstBtheBinputsBusedBtoBcreateBit.Bi
tBisBusedBtoBmeasureBtheBefficiencyBofBaBbusiness,BinBorderBtoBkeepBtradingBandBgai
nBprofit.
levelBofBproductivityB-BAnswerBtheBnumberBofBunitsBproducedBduringBaBtimeBperiod
FORMULAB:BlabourBproductivityB(numberBofBunitsBperBworker)B-
BAnswerBtotalBoutputBinBaBgivenBtimeBperiod/totalBworkersBemployed
FORMULAB:BcapitalBproductivityB-BAnswerBoutput/capitalBemployed
FormulaB:BlabourBcostBperBunitB-BAnswerBannualBpay/labourBproductivity
efficiencyB-BAnswerBproducingBoutputBatBtheBhighestBrationBofBoutputBtoBinput
, effectivenessB-
BAnswerBmeetingBtheBobjectivesBofBtheBenterpriseBbyBusingBinputsBproductivelyBtoB
meetBcustomersBneeds.
labourBintensiveB-
BAnswerBinvolvingBaBhighBlevelBofBlabourBinputBcomparedBwithBcapitalBequipment
capitalBintensiveB-
BAnswerBinvolvingBaBhighBquantityBofBcapitalBequipmentBcomparedBwithBlabourBinput
inventoryB(stock)B-
BAnswerBmaterialsBandBgoodsBrequiredBtoBallowBforBtheBproductionBandBsupplyBofBp
roductsBtoBtheBcustomer.
economicBorderBquantityB(EOQ)B-BAnswerBtheBoptimumBorBleast-
costBquantityBofBstockBtoBre-orderBtakingBintoBaccountBdeliveryBcostsBandBstock-
holdingBcosts.
bufferBinventoriesB-
BAnswerBtheBminimumBinventoryBlevelBthatBshouldBbeBheldBtoBensureBthatBproductio
nBcouldBstillBtakeBplaceBshouldBaBdelayBinBdeliveryBoccurBorBshouldBproductionBrates
Bincrease.
re-orderBquantityB-BAnswerBtheBnumberBofBunitsBorderedBeachBtime
leadBtimeB-
BAnswerBtheBnormalBtimeBtakenBbetweenBorderingBnewBstocksBandBtheirBdelivery
just-in-timeB-
BAnswerBthisBinventoryBcontrollingBmethodBaimsBtoBavoidBholdingBinventoriesBbyBreq
uiringBsuppliesBtoBarriveBjustBasBtheyBareBneededBinBproductionBandBcompletedBprod
uctsBareBproducedBtoBorder.