AQA AS LEVEL BUSINESS 7131/AQA AS LEVEL BUSINESS 7131 UNITS 1-6 LATEST UPDATED 2024

AQA AS LEVEL BUSINESS 7131/AQA AS LEVEL BUSINESS 
7131 UNITS 1-6 LATEST UPDATED 2024 WITH VERIFIED 
QUESTIONS AND CORRECT ANSWERS

Quality - Is measured by the extent to which an operation meets its customer 
requirements
Quality assurance - Is the maintenance of target quality by attention to detail at 
every stage of the process
Quality control - Is the system of maintaining standards by testing or inspecting 
the output against stafndards
Mass customisation - Is the term for producing on a large scale while still 
enabling individual customer preferences to be met
Inventory - Is the goods or stock it holds
Part time staff - Work less than a full working week, for example 20 hours per 
week
Temporary staff - Work for a limited period of time, for example for the summer 
only
Supply chain - Refers to all of the providers of resources (such as money, people, 
finance, machinery, equipment) at different stages of the operations process
Vertical integration - Is the combination of two or more stages of production 
normally operated by separate companies
Corporate social responsibility - Refers to the extent to which a business takes 
into account its stakeholder views and accepts its obligations to society over and 
above the legal requirements
Outsourcing - Is when a business uses an outside supplier
Financial objective - Goal or target pursued by the finance department (or 
function) within an organisation
Profit - Measures the extent to which revenues from selling a product over some 
time period exceed the costs incurred in producing it
Cash flow - The movement of cash into and out of a business over time
Income statement - Records a business' sales revenue over a trading period and 
all relevant costs incurred as well as the business' profit or loss
Gross profit - Income received from sales minus the cost of goods and services 
sold
Direct costs - Expenditure that can clearly be allocated to a particular product or 
area of the business e.g. raw materials and components
Indirect costs - Expenditure that relates to all aspects of a business' activities, 
such as maintenance costs for buildings or senior managers' salaries
Operating profit - The financial surplus arising from a business' normal trading 
activities and before taxation
Profit for the year - A measure of a business' profits that takes into account a 
wider range of expenditures and incomes including taxation
Revenues - The earnings or income generated by a firm as a result of its trading 
activities
Objectives - The medium to long term goals established to coordinate the business