Production
Costs
Quality
Location+
100

Degree how efficient the inputs are in production process, especially labor and capital.

What is productivity? 

100

Difference between current level of output and break-even output.

What is the margin of safety?

100

Checking for quality at the end of the production process.

What is quality control?

100

Costs that can be measured in financial terms, e.g. the cost of land, finance the company needs to invest related to numbers.

What are quantitative factors? 

200

Japanese term meaning ‘continuous improvement’ through the elimination of waste.

What is Kaizen?

200

When total revenue equals total costs

What is the break-even point?

200

Setting quality standards throughout production.

What is quality assurance?

200

Factors not related to numbers or finance that can directly impact costs, e.g. ethical issues, government regulations etc

What are qualitative factors?

300

Production method with minimum waste of resources

What is lean production?

300

Costs that change proportionally with the change in output.

What are variable costs?

300

The continuous improvement of products and processes by focusing on quality at each and every stage of production.

What is Total Quality Management (TQM)

300

A person who operates and takes the risk for a new business venture.

What is an entrepreneur?

400

Unique, high quality goods are produced using this method.

What is job production?

400

Factors that lead to a reduction in average costs as a business increases in size.

What is economies of scale?

400

Production of a good or service which meets customers expectations.

What are quality standards?

400

A business based on the use of the brand names, promotional logos and trading methods of an existing successful business

What is a franchise?

500

Large quantities of a product are produced in a continuous process

What is flow or mass production?

500

Factors that lead to an increase in average costs as a business grows beyond a certain size.

What are diseconomies of scale?

500

Famous quality standard called ISO for short

What is International Organization for Standardization?

500

Where two or more businesses start a new project together, sharing capital, risks and profits.

What is a joint venture?

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