Business A-Level
Automation and the cost structure
What Automation and the cost structure means in Business A-Level, as defined for AQA.
Definition of Automation and the cost structure
Check what you remember
Read the wording for your board, then hide it and explain Automation and the cost structure in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Shifts the cost structure towards high fixed costs and low variable costs, which raises the break even output and makes volume decisions riskier.
Topics that use Automation and the cost structure
- Strategic decision making (A-level only) (AQA A-Level)
Related terms
- Corporate social responsibility
- Extrapolation
- functional objectives
- gearing
- Investment appraisal of new technology
- opportunity cost
- Resistance and its cost to the business
- return on capital employed
Using Automation and the cost structure in the exam
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