Business A-Level
rationalisation
What rationalisation means in Business A-Level, as defined for AQA.
Definition of rationalisation
Check what you remember
Read the wording for your board, then hide it and explain rationalisation in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Cutting capacity by closing a site, which is justified only when demand is steady enough to support it.
Topics that use rationalisation
- 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
- capital intensive
- gearing
- labour intensive
- payback period
Using rationalisation in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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