Business A-Level
capital intensive
What capital intensive means in Business A-Level, as defined for AQA.
Definition of capital intensive
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Reference: AQA
A process where machines convert variable cost into fixed cost, so cost per unit falls at volume but break even output rises.
Topics that use capital intensive
- Making operational decisions to improve performance: increasing efficiency and productivity (AQA A-Level)
Related terms
- average rate of return
- break-even output
- buffer stock
- capacity utilisation
- gearing
- labour intensive
- payback period
- spare capacity
Using capital intensive in the exam
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