Economics B A-Level
Cost management
What Cost management means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Cost management
Check what you remember
Read the wording for your board, then hide it and explain Cost management in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Under-utilisation raises average fixed costs and so total unit costs, while over-utilisation raises average costs through overtime pay and higher maintenance costs.
Topics that use Cost management
- Capacity utilisation (Pearson Edexcel A-Level)
Related terms
- Efficiency
- Expanding capacity
- Full capacity
- Quality control
- Rationalisation
- Subcontracting
- Flexibility
- Spare capacity
Using Cost management 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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