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Business Studies IGCSEPDF 143
212 pagesrevision 46931
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→ Formula:
Break-even output = Fixed Costs ÷ (Selling Price – Variable Cost per unit)
Uses:
● To plan output and pricing.
● To assess profitability.
Limitations:
● Based on estimates.
● Doesn’t consider market changes or demand shifts.
Quality means meeting customer expectations.
Methods of maintaining quality:
1. Quality Control: Inspecting finished products.
2. Quality Assurance: Checking during production.
3. Total Quality Management (TQM): Every worker responsible for quality.
Benefits of good quality:
● Customer loyalty.
● Reduced waste.
● Strong brand image.
Problems of poor quality:
● Complaints and returns.
● Damage to reputation.
● Increased costs.
4.7 Quality
Questions: