SECTION A
1 (a) Define the term ‘marginal cost’. [2]
(b) Explain two uses of break-even analysis. [3]
Break-even analysis may be used to make comparisons on two different options.
Break-even analysis may also assit managers when taking important decisions
2 (a) Define the term ‘commission’. [2]
(b) Explain two disadvantages to a business of using empowerment to motivate its employees. [3]
4 (a) Define the term ‘customer (market) orientation’. [2]
An outward looking approach that bases product decisions on consumer demands as established by market research.
(b) Explain two limitations to a business of using market segmentation. [3]