Oxford Cambridge and RSA
Wednesday 13 October 2021 – Morning
A Level Business
H431/02 The UK business environment
Time allowed: 2 hours
You must have:
* 8 9 6 1 3 0 0 4 6 9 *
• the Resource Booklet
You can use:
• a calculator
* H 4 3 1 0 2 *
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
INSTRUCTIONS
• Use black ink.
• Write your answer to each question in the space provided. You can use extra paper if
you need to, but you must clearly show your candidate number, the centre number and
the question numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
INFORMATION
• The total mark for this paper is 80.
• The marks for each question are shown in brackets [ ].
• Quality of extended response will be assessed in questions marked with an
asterisk (*).
• This document has 16 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2021 [601/4675/8] OCR is an exempt Charity
DC (KN) 300241/2 Turn over
, 2
Section A
Answer all the questions.
1 State two features of an oligopoly.
1 .......................................................................................................................................................
2 .......................................................................................................................................................
[2]
2 A business wants to use appraisal to help measure workforce performance.
Explain two appraisal methods it may use.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
3 Explain two extension strategies a business may use to prevent a product entering the decline
stage of its product life cycle.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
© OCR 2021
, 3
4 A factory is able to produce 20 000 units of output per month. Earlier this year, the factory produced
the following levels of output.
Month Output
February 12 000
March 15 000
April 18 000
Calculate the average capacity utilisation over the three months. Show your workings.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer = .......................................................... [2]
5 A business produces two types of coffee machine: the Grandé and the Lite. The following table
provides information about the production of these machines.
Grandé Lite
Output per month 5 000 20 000
Direct costs per unit £90 £70
Overheads per month £750 000
The business uses absorption costing, with overheads allocated based on the output per month.
Calculate the total monthly cost of output for the Grandé coffee machine. Show your workings.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer = .......................................................... [4]
© OCR 2021 Turn over
Wednesday 13 October 2021 – Morning
A Level Business
H431/02 The UK business environment
Time allowed: 2 hours
You must have:
* 8 9 6 1 3 0 0 4 6 9 *
• the Resource Booklet
You can use:
• a calculator
* H 4 3 1 0 2 *
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
INSTRUCTIONS
• Use black ink.
• Write your answer to each question in the space provided. You can use extra paper if
you need to, but you must clearly show your candidate number, the centre number and
the question numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
INFORMATION
• The total mark for this paper is 80.
• The marks for each question are shown in brackets [ ].
• Quality of extended response will be assessed in questions marked with an
asterisk (*).
• This document has 16 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2021 [601/4675/8] OCR is an exempt Charity
DC (KN) 300241/2 Turn over
, 2
Section A
Answer all the questions.
1 State two features of an oligopoly.
1 .......................................................................................................................................................
2 .......................................................................................................................................................
[2]
2 A business wants to use appraisal to help measure workforce performance.
Explain two appraisal methods it may use.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
3 Explain two extension strategies a business may use to prevent a product entering the decline
stage of its product life cycle.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
© OCR 2021
, 3
4 A factory is able to produce 20 000 units of output per month. Earlier this year, the factory produced
the following levels of output.
Month Output
February 12 000
March 15 000
April 18 000
Calculate the average capacity utilisation over the three months. Show your workings.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer = .......................................................... [2]
5 A business produces two types of coffee machine: the Grandé and the Lite. The following table
provides information about the production of these machines.
Grandé Lite
Output per month 5 000 20 000
Direct costs per unit £90 £70
Overheads per month £750 000
The business uses absorption costing, with overheads allocated based on the output per month.
Calculate the total monthly cost of output for the Grandé coffee machine. Show your workings.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer = .......................................................... [4]
© OCR 2021 Turn over
