as production increases, the cost per unit decreases

Costing

Design and technology

In this unit pupils will develop designing and making principles knowledge with an explicit focus on exam technique.

A business sets its price by considering the cost of materials, labour, overhead, and ...

Which of the following is an example of a direct cost?

Which of the following are linked to external costing factors?

Calculate the overhead costs (e.g. rent, utilities)

Set the price based on total costs and market factors

Put the following steps of product costing in the correct order:

When a business produces more units of a product, it can lower the cost per unit due to __________.

It increases direct labour costs but lowers material costs.

It reduces the need for labour and can lower production costs overall.

How does automation typically affect the costs of producing a product?

A design {{}} is a statement that outlines the requirements of a product.

To gather information about customer needs and preferences

What is the main purpose of market research?

Which of the following materials would not be suitable for a child’s lunchbox?

A company sells a product for £30, and the cost to make it is £18. How much profit do they make per unit?

Which of the following is NOT a cost businesses need to consider?

Some businesses just like charging more money.

Prices depend on costs, competition, and customer demand.

Expensive products are always better quality.

Businesses guess how much people will pay.

Why do businesses set different prices for similar products?