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A company's total costs are too high - OCR - GCSE Business - Question 4 - 2020 - Paper 1
Question 4
A company's total costs are too high. The finance manager advises that this is being caused by increasing wage costs as the company expands. Which one of the follow... show full transcript
Worked Solution & Example Answer:A company's total costs are too high - OCR - GCSE Business - Question 4 - 2020 - Paper 1
Step 1
Automating the production process
Answer
Automating the production process is the most effective long-term strategy for reducing costs associated with increasing wages. This shift allows a company to increase efficiency, reduce reliance on manual labor, and mitigate rising wage expenses. By implementing technology in production, the company can improve speed, minimize errors, and ultimately lower the overall costs in the long run.