OCR GCSE Business: Operations (J204) – 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 section 4, Operations, of the OCR GCSE (9-1) Business (J204) specification, Version 2.0 (January 2026), topics 4.1 to 4.6, assessed in Business 2 (J204/02). Every business is invented. Learn the content first in the study guide and the revision notes, then check your level on the free diagnostics. More mixed practice is in the operations, finance and influences set. See the course hub and the checklist.

Questions

1. Identify the production process in each case. (a) A boatyard builds one yacht to a client’s design. [1] (b) A bottling plant runs one line 24 hours a day making identical bottles. [1] (c) Ashbourne Vale Pottery makes 60 identical mugs, then 40 identical bowls on the same kiln. [1]

2. Explain one way that introducing robots could affect a factory’s costs. [2]

3. Dalesford Lamps checks a sample of 400 lamps and finds 18 faulty. (a) Calculate the percentage of the sample that is faulty. [2] (b) Dalesford sells 12,000 lamps a year. 2.5% are returned and each return costs an £18 refund. Calculate the yearly cost of refunds. [2]

4. (a) State what is meant by quality assurance. [1] (b) Explain one benefit to Dalesford Lamps of using quality assurance rather than only quality control. [2]

5. Kirkwhite Dental is a practice that sells a service. Analyse why quality matters to it. [4]

6. Hallbeck Cycles sells in three ways. Last month its sales were: shop (face to face) £38,400, website £52,800, telesales £8,800. (a) Calculate the percentage of total sales that came from the website. [2] (b) Explain one benefit to Hallbeck Cycles of selling online. [2] (c) State one disadvantage of telesales. [1]

7. Explain how product knowledge and customer engagement each contribute to good customer service in a bike shop. [4]

8. A shop sells electrical goods. Explain two ways in which consumer law affects the business. [4]

9. Westoak Foods makes frozen pies with 9 staff and is choosing a site. Site P is on an estate near a large town: rent £3,600 a month, wages £1,950 per person per month, transport £1,200. Site Q is a rural unit next to the farms that supply its ingredients: rent £2,400, wages £2,300 per person per month because staff are harder to find, transport £950. (a) Calculate the total monthly cost of each site and state which is cheaper. [3] (b) Recommend a site for Westoak Foods. [6]

10. Ashbourne Vale Pottery is opening a second studio and needs a new clay supplier. Identify the four parts of the procurement role. [4]

11. Hallbeck Cycles needs 800 frames. A UK supplier charges £62 per frame, delivers in 4 days and delivers on time 99% of the time. An overseas supplier charges £51 per frame, delivers in 35 days and is on time 90% of the time. (a) Calculate how much less the overseas order would cost. [2] (b) Evaluate which supplier Hallbeck Cycles should choose. [6]

12. Dalesford Lamps makes 300 lamps a week in batches of several designs. A flow line with robots would cost £400,000, save £60,000 a year in wages and cost £15,000 a year to maintain, but it could make only one design. Evaluate whether Dalesford should buy it. [6]

Answers

1. (a) Job production [1]. (b) Flow production [1]. (c) Batch production [1]. [3] Examiner insight: Answers usually gain credit for the exact process name, so write “job”, “batch” or “flow” rather than a loose description such as “made to order”.

2. Robots do tasks without being paid wages [1], so labour cost per unit can fall over time, though the machines cost a lot to buy and maintain [1]. [2] Examiner insight: An “explain” answer tends to gain credit when a point is followed by its consequence, so a bare “it is cheaper” is usually too thin.

3. (a) Faulty / sample x 100 = 18 / 400 x 100 [1] = 4.5% [1]. (b) Returns = 12,000 x 0.025 = 300 [1]; cost = 300 x £18 = £5,400 [1]. [4] Examiner insight: Showing the formula and each step gives a marker something to credit if there is an arithmetic slip, and the unit (% or £) belongs with each answer.

4. (a) Building quality into every stage of production to prevent faults [1]. (b) It stops faults happening in the first place [1], so fewer lamps are wasted or returned, which cuts costs and protects reputation [1]. [3] Examiner insight: Saying only “it checks lamps” describes quality control. A distinguishing word such as “prevent” or “every stage” shows you know which method you mean.

5. Poor quality, such as inaccurate work or long waits, makes patients lose confidence [1] and leave, or write bad reviews, so the practice loses income [1]. Good quality means patients return for check-ups [1] and recommend the practice, which gains new patients and builds its reputation [1]. [4] Examiner insight: For “analyse”, answers tend to gain credit when a chain of reasoning is built (quality, then customer reaction, then business result). Naming a service quality such as accuracy or courtesy keeps the answer in context.

6. (a) Total = £38,400 + £52,800 + £8,800 = £100,000 [1]; website share = 52,800 / 100,000 x 100 = 52.8% [1]. (b) The website is open at any hour and reaches customers beyond the local area [1], so Hallbeck can sell more without opening more shops [1]. (c) Customers may find calls annoying, or cannot see the product [1]. [5] Examiner insight: Finding the total first is the step many answers skip. For part (b), “explain” asks for a benefit and a reason.

7. Product knowledge: staff who know the range can recommend the right bike size and answer questions [1], so customers buy suitable products and trust the shop [1]. Customer engagement: listening, replying quickly and asking for feedback [1] makes customers feel valued, so they return and recommend the shop [1]. [4] Examiner insight: Both terms need handling separately. An answer that merges them into “good staff” tends to lose the second half of the credit.

8. First way: the goods must be safe [1], so the shop must check or test products and risks costs or reputational damage if unsafe goods are sold [1]. Second way: goods must be of satisfactory quality [1], so faulty items may need a repair, replacement or refund, which adds cost, and ignoring this would harm its reputation [1]. [4] Examiner insight: Describing the effect on the business matters more than naming a law. Keep to general terms, such as “safe” and “satisfactory quality”, that the specification itself uses.

9. (a) Site P: wages 9 x £1,950 = £17,550; total £3,600 + £17,550 + £1,200 = £22,350 [1]. Site Q: wages 9 x £2,300 = £20,700; total £2,400 + £20,700 + £950 = £24,050 [1]. P is cheaper, by £1,700 a month [1]. (b) I recommend Site P. P is £1,700 a month cheaper in total [1]. It is near a large town, so staff are easier to recruit and wages lower [1], and it is closer to its market [1]. Site Q is next to the farms, so ingredients arrive fresh and cheaply [1], and the rent is lower, but it needs higher wages and finding staff is harder [1]. Overall, P is better unless the freshness of local ingredients matters more than cost and labour supply [1]. [9] Examiner insight: A recommendation tends to gain credit when it uses the figures, weighs at least one factor against the other site, and ends in a clear decision with a reason.

10. Identifying goods and services to buy [1]; choosing suppliers [1]; ordering goods and services [1]; receiving deliveries from suppliers [1]. [4] Examiner insight: Four separate, clearly named parts are needed. Answers that describe “buying” without separating the stages usually cover fewer than four.

11. (a) UK: 800 x £62 = £49,600; overseas: 800 x £51 = £40,800 [1]; overseas costs £8,800 less [1]. (b) The overseas supplier saves £8,800 on this order, which would raise profit [1]. But 35 days against 4 days means a longer supply chain, so Hallbeck must order well ahead and hold more stock [1]. At 90% reliability, about one delivery in ten is late, which could halt production and delay customers [1], while the UK supplier at 99% protects customer service [1]. The best choice depends on how costly a delay would be, because late frames could cancel out the saving [1]. I would choose the UK supplier unless Hallbeck can hold enough stock to cover the delay [1]. [8] Examiner insight: “Evaluate” asks you to weigh both sides and reach a supported judgement. Using the numbers given and naming the supply factors (time, reliability, costs, customer service) strengthens the answer.

12. Wage saving of £60,000 less maintenance of £15,000 gives a net saving of £45,000 a year [1]. Output would be steady and quality consistent [1]. But the £400,000 outlay is large compared with the yearly saving [1], and the line could make only one design, so Dalesford would lose its variety if customers want several designs [1]. Fewer workers might be needed, which could affect staff morale [1]. I would buy it only if demand for a single design is high and steady; otherwise the flexibility of batch production is worth keeping [1]. [6] Examiner insight: A judgement is expected for “evaluate”. Calculating the net saving shows the numbers have been used, and a conclusion that depends on a stated condition shows reasoning.

Where marks are usually lost

• Naming a production process loosely instead of using job, batch or flow.
• Saying quality control prevents faults, or giving no reason why quality matters.
• Leaving out the unit (% or £), or the working, in a calculation.
• Giving a benefit with no consequence in an explain question.
• Discussing e-commerce or telesales without any link to the business in the stem.
• Naming laws instead of explaining the effect on safety, quality and reputation.
• Choosing a location or supplier on one factor, such as cost, and ignoring time, reliability and labour.
• Stopping at the comparison and not giving a final recommendation or judgement.

Frequently asked questions

What does section 4 Operations cover in OCR GCSE Business J204? Section 4 of OCR GCSE (9-1) Business (J204) covers production processes, quality of goods and services, the sales process and customer service, consumer law, business location and working with suppliers. These questions use invented businesses to practise each area.

How do you write a good “explain” answer in GCSE Business? Give a point, then develop it with a consequence for the business in the question. A benefit stated with no consequence does not earn the second mark.

How should you compare two suppliers or two sites in an exam question? Calculate the cost of each option first, then weigh the cheaper one against non-cost factors such as delivery time, reliability or closeness to customers. Finish with a supported judgement about which option suits the business best.

Next steps

• Re-read the revision notes and the study guide.
• Take the free diagnostics to check where you stand.
• Open the OCR GCSE Business hub and the checklist.
• Book a free trial class if you want help with exam technique.

Official syllabus

OCR, GCSE (9-1) in Business (J204) Specification, Version 2.0 (January 2026), for first assessment in 2019, section 2c, Content of Business 2: operations, finance and influences on business, section 4 Operations.