AQA GCSE Business: Business operations (8132) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover topic 3.3 Business operations in the AQA GCSE Business (8132) specification, first teaching September 2017: production processes (3.3.1), the role of procurement (3.3.2), the concept of quality (3.3.3) and good customer services (3.3.4), plus the interdependence of business functions. All businesses and figures are invented. Revise first with the study guide or the revision notes. Course hub: AQA GCSE Business. Printable list: checklist. Not sure where to start? Try the free diagnostics.

Questions

1. Define flow production and give one product that suits it. [2]

2. Vossmere Candles has fixed costs of £24,000 a month and variable costs of £4 for each candle made.

(a) Calculate the cost per candle when output is 4,000 candles and when output is 8,000 candles. [3] (b) Explain why the cost per candle falls as output rises. [2]

3. A bakery wants to adopt lean production. Explain one way this could reduce waste. [3]

4. Ambrisk Print has the objective of increasing sales by 20% this year. Give one example of a functional plan for each of operations, human resources, marketing and finance that would support this objective. [4]

5. Ambrisk Print buys £3,200 of paper each month. Demand for its print jobs rises and falls from week to week. The paper supplier is 40 miles away and has been late on occasion.

Option JIC: one monthly order. The supplier gives an 8% discount, and storing the paper costs £150 a month. Option JIT: four weekly deliveries at full price, with a delivery charge of £30 each time.

(a) Calculate the total monthly cost of each option. [4] (b) Evaluate whether Ambrisk Print should use JIT. [6]

6. Penbray Tools needs 5,000 components and uses JIT stock management. Three suppliers quote as follows.

Supplier	Price per component	Faulty components	Deliveries arriving late
X	£3.10	2%	1 in 12
Y	£2.85	7%	1 in 4
Z	£3.40	0.5%	1 in 25

(a) Calculate the cost of 5,000 components from each supplier. [2] (b) Analyse which supplier Penbray Tools should choose. [6]

7. Define procurement and logistics, and explain how managing a supply chain well can help a business. [4]

8. Ibsworth Scooters made 1,250 scooters in a month and 30 were found to be faulty.

(a) Calculate the percentage of scooters that were faulty. [2] (b) Had the 30 faulty scooters reached customers, a recall would have cost £55 for each one. Calculate the cost. [2] (c) State two other consequences of quality issues for Ibsworth Scooters. [2]

9. Trewin Bakery plans to grow by letting franchisees run new outlets under its name.

(a) State what is meant by total quality management (TQM). [2] (b) Analyse one quality risk of franchising and how TQM could reduce it. [4]

10. A shop sells laptops.

(a) Identify two post-sales services it could offer. [2] (b) Explain one way social media has changed customer service. [3]

11. A cafe chain, Ambrisk Cafes, has 1,800 customers a month, each spending £14 on average. Slow, unfriendly service causes it to lose 6% of these customers.

(a) Calculate the revenue lost in a month and in a year, assuming the loss continues. [3] (b) Explain two dangers of poor customer service for the chain. [4]

12. Ibsworth Bikes assembles electric bikes. Last year it paid £16,500 for product recalls. The owner is considering TQM. It would cost £9,000 in one-off staff training and £1,200 a month in extra inspection costs. Evaluate whether Ibsworth Bikes should introduce TQM. [9]

Answers

1. Flow production is making large quantities of identical products continuously, often on a production line [1]. Any suitable example, such as tinned soup or bottled water [1]. [2] Examiner insight: A definition needs the idea of continuous, standardised output; naming a product alone does not show you know the method.

2. (a) Unit cost = (fixed costs + variable costs) / output [1]. At 4,000: (24,000 + 16,000) / 4,000 = £10 [1]. At 8,000: (24,000 + 32,000) / 8,000 = £7 [1]. [3] (b) The fixed costs are spread over more candles [1], so each candle carries a smaller share (£6 at 4,000 candles, £3 at 8,000), while the variable cost per candle stays at £4 [1]. [2] Examiner insight: Show the working for each output; a wrong figure with clear working can still earn credit for the method, while a bare wrong figure cannot.

3. Identify a technique, such as keeping low stock of ingredients and baking to order [1]. Link: this means less bread is left unsold and thrown away, and fewer ingredients go out of date [1]. Result: lower costs and less waste for the bakery [1]. [3] Examiner insight: A named technique with no link to the bakery usually stays at the first point; connect it to what is wasted in this context.

4. Any suitable plan for each, for example: operations, plan extra printing capacity or machine time [1]; human resources, recruit and train extra print operators [1]; marketing, run a promotion to reach new customers [1]; finance, set a budget for the extra paper and wages [1]. [4] Examiner insight: Each plan should clearly serve the sales objective; a point that would suit any business, with no link to higher sales, is weak.

5. (a) JIC: 3,200 x 0.92 = £2,944 [1]; plus £150 storage = £3,094 [1]. JIT: 4 x £30 = £120 [1]; £3,200 + £120 = £3,320 [1]. [4] (b) JIC is £226 cheaper per month [1]. JIT saves the £150 storage cost but gives up a £256 discount and adds £120 of delivery charges, so it costs more overall [1]. JIT frees cash and avoids paper being damaged or left unused [1]. Demand varies, so JIC’s buffer stock would let the firm meet a sudden rush [1]. A late delivery under JIT could halt the presses and delay jobs, as the supplier has been late before [1]. Judgement with a reason, for example: on cost alone JIC is better, so Ambrisk Print should keep buffer stock unless storage costs rise or it finds a nearer, more reliable supplier [1]. [6] Examiner insight: Evaluation answers tend to gain credit for using the supplier details in the stem and for a final decision that follows from the figures.

6. (a) X: 5,000 x 3.10 = £15,500; Y: 5,000 x 2.85 = £14,250; Z: 5,000 x 3.40 = £17,000 [1]; method shown for each [1]. [2] (b) Y is cheapest, £1,250 less than X [1], but 7% faulty means 350 unusable components [1], and late deliveries 1 time in 4 are a serious risk under JIT because production would stop [1]. Z is dearest, £2,750 more than Y, but only 25 faulty and rarely late [1]. X is a middle option, with 100 faulty and a late delivery about 1 time in 12 [1]. Judgement, for example: choose X or Z, because with JIT reliability and quality outweigh the lower price of Y; Z if stoppages are very costly, X if budget matters [1]. [6] Examiner insight: Analysis means using price, quality and reliability together for this business; a ranking by price alone misses the JIT context.

7. Procurement is obtaining the goods and services a business needs from suppliers [1]. Logistics is moving and storing those goods, such as transport and warehousing [1]. Good supply chain management means working with suppliers so processes run efficiently and cost effectively, or getting the best price and value [1]. It also cuts waste and unnecessary costs, giving fast production times [1]. [4] Examiner insight: Two definitions plus two linked benefits is the shape of the question; run-together definitions tend to lose the separate points.

8. (a) 30 / 1,250 x 100 [1] = 2.4% [1]. [2] (b) 30 x £55 [1] = £1,650 [1]. [2] (c) Any two from: lost sales, damaged reputation, returns or refunds, loss of customer trust [1] [1]. [2] Examiner insight: State the unit with the answer, and use percentage form where the question asks for a percentage.

9. (a) TQM means every employee in every department is responsible for quality [1], aiming to get things right first time rather than only checking at the end [1]. [2] (b) Franchisees run outlets themselves, so Trewin Bakery has less direct control [1]; recipes, hygiene or service could vary between outlets [1], harming the brand’s reputation [1]. TQM sets shared standards and trains franchisee staff to follow them [1]. [4] Examiner insight: A stated risk needs a consequence for the business and a link to how TQM addresses it; the word quality alone does not do either.

10. (a) Any two: user training, a help line, servicing or repairs [1] [1]. [2] (b) Customers can contact the shop quickly and publicly [1]. The shop can reply fast to complaints or questions [1], but a poor reply is seen by many people and can harm its reputation [1]. [3] Examiner insight: Linking the change to the effect on the business, rather than listing platforms, is what moves an answer beyond description.

11. (a) 1,800 x 0.06 = 108 customers lost [1]; 108 x £14 = £1,512 a month [1]; x 12 = £18,144 a year [1]. [3] (b) Dissatisfied customers: they may not return, so sales fall [1], and revenue drops, as the figures show [1]. Poor reputation by word of mouth: unhappy customers tell others [1], so potential customers are put off, reducing future revenue [1]. [4] Examiner insight: Each danger needs a consequence for the business; naming dangers without explaining them scores less.

12. Cost of TQM in year one: 12 x £1,200 = £14,400 [1]; plus £9,000 = £23,400 [1]. That is £6,900 more than last year’s recall cost of £16,500, if TQM removed every recall [1]. Benefits beyond recalls: better reputation and additional sales, and possibly a higher price [1]; electric bike faults may be dangerous, so quality matters greatly [1]. Training is one-off, so later years cost less (£14,400 inspection against recalls) [1]. Against: inspection is a continuing cost, and TQM may not stop all recalls [1]. Judgement with reasons, for example: introduce TQM, because the extra cost is modest compared with reputation risk, though the owner should monitor the cost [2]. [9] Examiner insight: Use the figures in the stem and balance both sides before deciding; a one-sided answer cannot show full evaluation.

Where marks are usually lost

• Leaving fixed costs out of a unit cost, or dividing the wrong figure by output.
• Describing job, flow, JIT and JIC in general terms without using the business in the stem.
• Judging JIT on cost alone, with no mention of reliable suppliers or late deliveries.
• Choosing the cheapest supplier without weighing quality and reliability.
• Giving a percentage without the multiplication by 100, or a cost without units.
• Listing the costs of quality without saying what they buy: fewer recalls, a better reputation or higher prices.
• Giving a “benefit of good service” that is only politeness, not a method such as product knowledge or post-sales help.
• Finishing an evaluate or justify question without a judgement, or with a judgement that does not follow from the points made.

Next steps

• Revise with the revision notes and the study guide.
• Return to the AQA GCSE Business hub and tick topics off on the checklist.
• Take one of the free 10-minute diagnostics to find weak areas.
• Book a free trial class: /trial/.

Frequently asked questions

What does topic 3.3 Business operations cover in AQA GCSE Business (8132)? Production processes, the role of procurement, the concept of quality, and good customer service. These practice questions are original and test each of these areas.

How do you calculate unit cost? Add fixed costs and total variable costs, then divide by output. A common error is leaving fixed costs out or dividing the wrong figure by output.

How should I judge whether a business should use just in time stock? Do not judge it on cost alone. Weigh the saving on storage against the need for reliable suppliers and the risk of late deliveries, using the details in the question.

How do I choose between suppliers in an analyse question? Use price, quality and reliability together for the business in the case. Choosing the cheapest supplier without weighing faulty items and late deliveries limits the marks.

Official syllabus

AQA GCSE Business (8132) specification, first teaching September 2017, published by AQA: section 3.3 Business operations (3.3.1 to 3.3.4).