Economies and diseconomies scale. Business growth can results in increased average costs. Some businesses will be experiencing a fall in their average costs while they grow. However, at certain point, the average costs will start to rise due to inefficiency. The handout attached gives a summary of the reasons for falling and rising average costs; otherwise known as economies of scale and diseconomies of scale respectively.

Businesses involved in production will use different methods of production. Some will tend to result in: lower unit costs than others, motivated workforce or increased customer loyalty. This handout tries to look at different methods of production and their advantages and disadvantages.

Scarce resources are available for production of goods and services. Businesses, therefor, need to use these resources in the most efficient way possible by reducing waste and minimizing on costs. To be able to achieve this, less of every resource should be used to produce the goods and services needed by customers. Lean production seeks to provide a solution to efficient utilization of resources. This handout tries to give an insight into lean production.

Quality is important for all forms of business units. Customers expectations can only be met by producing quality products. On the other hand, businesses can benefit by increased sales resulting to higher profits if they incorporate quality into their production of goods and provision of services. Let’s find out more about quality and its benefits to businesses.

The resource contains a brief overview of the uses of the Journal and the Trial balance. In addition, you will be able to learn about the limitations of the trial balance.