Business A-Level
spare capacity
What spare capacity means in Business A-Level, as defined for AQA.
Definition of spare capacity
Check what you remember
Read the wording for your board, then hide it and explain spare capacity in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Slack left when a business is not running near the ceiling, giving room for maintenance, an urgent order or a sickness absence.
Topics that use spare capacity
- 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 spare capacity 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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