Edexcel GCSE Business: Quality and the sales process (1BS0) – 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 Theme 2, Topic 2.3 items 2.3.3 and 2.3.4 of the Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0) specification, Issue 2, July 2022. The specification says formulae are not provided in the examinations, so work the calculations from memory.

Links: the study guide, the revision notes, the Business hub, the printable checklist and the free diagnostics.

Questions

1. Define the term “quality control”. [2]

2. Give two parts of the sales process. [2]

3. Tarn Pottery checks 2,400 mugs and rejects 156 as faulty. Each mug costs £3.10 to make.

(a) Calculate the defect rate. [2] (b) Calculate the cost of making the rejected mugs. [2]

4. Lakeview Lodge is a hotel. The manager trains all housekeeping staff in a set cleaning routine and agrees a linen standard with the laundry supplier.

(a) State whether this is quality control or quality assurance. [1] (b) Outline one way this could help the hotel control its costs. [2]

5. Explain one way in which good quality can help a business gain a competitive advantage. [3]

6. Rushby Radios makes 5,000 radios a month. At present 4.8% are faulty, and each faulty radio costs £14.50 to repair or scrap. The owner is considering a quality assurance programme costing £1,900 a month, which is expected to cut the fault rate to 1.6%.

(a) Calculate the monthly cost of faulty radios at present. [2] (b) Calculate the total monthly cost of faulty radios and the programme after the change. [2] (c) Calculate the monthly saving. [1]

7. Tevington Garden Centre records the waiting times of six customers at the till, in minutes: 4, 7, 12, 5, 9, 7. Complaints about queues were 48 in September and 36 in October.

(a) Calculate the mean waiting time to 1 decimal place. [2] (b) Calculate the percentage change in complaints from September to October. [2] (c) Identify the longest waiting time. [1]

8. Explain one benefit to a business of providing post-sales service. [3]

9. Alderby Cycles is an independent bike shop. Two new sales assistants know little about gears, frame sizes or brakes. Customers often ask for advice before spending several hundred pounds, and sales have fallen. Analyse how the product knowledge of its sales staff may affect Alderby Cycles. [6]

10. Calder Cabinets makes 6,000 kitchen cabinets a year. At present 5% are faulty, and each faulty cabinet costs £400 in rework, replacement or refunds. The owner is choosing between two options for the coming year.

Option A: employ two extra inspectors at a total cost of £22,000. The fault rate is expected to fall to 3%. Option B: introduce a quality assurance programme of staff training and supplier agreements, costing £38,000. The fault rate is expected to fall to 1.5%, but training will take about six months.

Justify which option Calder Cabinets should choose. [9]

11. Hexby Plants sells houseplants online to 2,000 customers a year. At present 35% buy again, and the average spend is £28. The gross profit margin is 60%. The owner plans to spend £4,500 a year on faster replies, a plant-care guide and free replacement of damaged plants. This is expected to raise repeat buying to 42% and to bring 150 extra new customers through recommendations, each spending £28.

Evaluate whether Hexby Plants should go ahead with the plan. [9]

Answers

1. Checking or testing products [1] to find faults, so that faulty items can be removed or put right before they reach customers [1]. [2] Examiner insight: A definition earns more credit when it says what quality control does and when it takes place; a vague phrase such as “making sure things are good” does not separate it from quality assurance.

2. Any two of: product knowledge [1]; speed and efficiency of service; customer engagement; responses to customer feedback; post-sales service [1]. [2] Examiner insight: A “give” question tests recall, so one short phrase for each is enough; adding explanation takes time without adding to the answer.

3. (a) Defect rate = 156 / 2,400 [1] x 100 = 6.5% [1]. [2] (b) 156 x £3.10 [1] = £483.60 [1]. [2] Examiner insight: On a “calculate” question, showing the substitution gives credit for the method even if the arithmetic slips, and the pound sign or percentage sign belongs with the final answer.

4. (a) Quality assurance [1]. [1] (b) Staff who follow a set routine and use good-quality linen make fewer mistakes, so fewer rooms need to be cleaned again [1], which saves paid staff time and reduces refunds to unhappy guests [1]. [2] Examiner insight: An “outline” answer gains credit for two linked points set in the business named in the question; a general statement about quality that could apply to any firm tends to gain less.

5. Customers who are satisfied with consistent quality are more likely to buy again [1] and to recommend the business to others [1], so the business can win customers from rivals whose quality is less reliable, giving it a competitive advantage [1]. [3] Examiner insight: An “explain” answer is built from a point plus two expansion steps; a chain that ends in the idea of attracting customers from rivals is clearer than a list of separate benefits.

6. (a) Faulty radios = 5,000 x 4.8% = 240 [1]. Cost = 240 x £14.50 = £3,480 [1]. [2] (b) Faulty radios after = 5,000 x 1.6% = 80 [1]. Total = (80 x £14.50) + £1,900 = £1,160 + £1,900 = £3,060 [1]. [2] (c) £3,480 - £3,060 = £420 a month [1]. [1] Examiner insight: Part (b) asks for the programme cost to be included with the cost of faults; an answer that gives only the £1,160 answers a different question.

7. (a) Total = 4 + 7 + 12 + 5 + 9 + 7 = 44 [1]. Mean = 44 / 6 = 7.33, so 7.3 minutes [1]. [2] (b) Change = (36 - 48) / 48 x 100 [1] = -25%, a fall of 25% [1]. [2] (c) 12 minutes [1]. [1] Examiner insight: In percentage change, the original value is the divisor; using 36 instead of 48 gives 33.3%, which describes a different comparison.

8. Customers who receive help after the sale, such as repairs or returns, feel valued [1], so they are more likely to buy from the business again [1] and to leave positive reviews that attract new customers [1]. [3] Examiner insight: Naming a service such as a guarantee is only the start; credit comes from following it through to what it does for the business, such as repeat sales or reputation.

9. Customers spending several hundred pounds want advice on which bike suits them [1]. Staff who know gears and frame sizes can match a bike to the customer’s needs [1], which makes a sale more likely and reduces returns of unsuitable bikes [1]. Staff with little knowledge may give wrong advice or fail to answer questions, so customers may lose trust and buy from a rival or online [1]. This fits the fall in sales, and the shop also loses accessory sales and recommendations [1]. Training the two assistants costs little compared with the value of a single lost bike sale, so product knowledge is a key part of Alderby’s sales process [1]. [6] Examiner insight: An “analyse” answer is placed in the context given, so references to bikes, gears and sales falling gain more than a general description of product knowledge.

10. Current cost = 6,000 x 5% = 300 faulty x £400 = £120,000 [1]. Option A: 3% = 180 faulty x £400 = £72,000; plus £22,000 = £94,000, a saving of £26,000 [1][1]. Option B: 1.5% = 90 faulty x £400 = £36,000; plus £38,000 = £74,000, a saving of £46,000 [1][1]. B saves £20,000 more than A [1]. Option A is quality control, which finds faults after materials and labour are used, whereas Option B is quality assurance, which prevents faults being made [1]. A risk with B is the six months of training, so the full fall may not be reached in the first year, and the cost is higher at the outset [1]. Judgement: choose Option B, because it saves £20,000 more on the figures and prevents waste instead of finding it, even if the saving were smaller in year one, though the owner should check that training delivers the forecast fault rate [1]. [9] Examiner insight: A “justify” answer recommends one of the two options using the data supplied; stronger responses use the figures to support the choice and note a risk, rather than describing both options equally.

11. Repeat customers now = 2,000 x 35% = 700, spending 700 x £28 = £19,600; after = 2,000 x 42% = 840, spending £23,520, so extra repeat revenue = £3,920 [1]. New customers add 150 x £28 = £4,200 [1]. Total extra sales revenue = £8,120 [1]. Extra gross profit = £8,120 x 60% = £4,872 [1], which exceeds the £4,500 cost by £372 [1]. In favour: repeat customers cost less to win than new ones, and good service builds reviews and reputation that are not in the figures [1]. Against: the gain is small, and if repeat buying rose to only 40%, extra revenue would be £2,800 + £4,200 = £7,000, extra gross profit £4,200, and the plan would lose £300 [1]. The cost is paid every year, while the benefits from reputation may build slowly [1]. Judgement: go ahead, as the forecast gives a small gain and non-financial benefits support it, but review results after a year because the plan is not profitable if the forecast is missed [1]. [9] Examiner insight: An “evaluate” answer is stronger when the calculation is compared with the cost and then tested against a less favourable outcome, ending with a conclusion that follows from the weighing.

Where marks are usually lost

• Defining quality control as preventing faults, which belongs to quality assurance.
• Giving a general benefit of quality without linking it to the business in the case.
• Leaving out the cost of the quality programme when comparing options.
• Using the new value as the divisor in a percentage change.
• Forgetting units: the pound sign, minutes or the percentage sign.
• Describing customer service without saying what it does for sales or reputation.
• Writing that more spending on quality always improves profit.
• Finishing an “evaluate” or “justify” answer without a recommendation or a reason for it.

Next steps

• Revise with the revision notes.
• Re-read the study guide.
• Check coverage on the printable checklist and the Business hub.
• Try all the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What do these quality and sales process questions cover? They follow Pearson Edexcel GCSE Business (1BS0) Theme 2 items 2.3.3 and 2.3.4: quality control, quality assurance, how quality controls costs and builds competitive advantage, the sales process and customer service.

What is a common mistake when defining quality control? Saying quality control prevents faults. Preventing faults is quality assurance; quality control checks products to find faults after they have happened.

How do you calculate a defect rate? Divide the number of rejected items by the total checked and multiply by 100. For example, 85 rejects out of 1,250 candles is a 6.8% defect rate.

What should you include when comparing quality options? Include the cost of the quality programme itself as well as the savings from fewer faults, then give a recommendation with a reason. Leaving out the programme’s cost is a frequent error.

Official syllabus

Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0), Specification, Issue 2, July 2022, published by Pearson Education Limited. Theme 2, Topic 2.3 Making operational decisions, content items 2.3.3 and 2.3.4.