IB Business Management SL 5.2 Operations Methods Questions
Compare operations methods by linking production volume, variety, flexibility, cost and quality to business decisions.
- Syllabus
- First assessment 2024
- Course
- Business management SL
- Level
- SL
Exam points
- Define and identify the key concepts and tools in 5.2 Operations methods.
- Apply 5.2 Operations methods to business calculations, case evidence or management decisions where relevant.
- Analyse and evaluate 5.2 Operations methods using case context, stakeholder impacts and business trade-offs.
Covered syllabus points
Question 1
Currently, LC manufactures ceiling fans in a building that is financed by long-term debt. LC is considering selling the building to pay off the long-term debt and moving production to a new building, which LC would lease.
Lusanka Company (LC)
Lusanka Company (LC) manufactures ceiling fans using a mass production process. Selected financial information for LC is shown in Table 1.
Table 1: Selected financial information for LC for the year ended 31 December 2022 and as of 31 December 2022 (figures in \$000s)
Currently, LC manufactures ceiling fans in a building that is financed by long-term debt. LC is considering selling the building to pay off the long-term debt and moving production to a new building, which LC would lease.
State two features of a mass production process.
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