SHEPHERDVILLE COLLEGE

Talojongon, Tigaon, Camarines Sur

College of Education Department
Second Semester
AY 2022 – 2023
_______________________________________________________________________________________

THE ENTREPRENEURAL MIND

PRODUCTION OF GOODS AND SERVICES

Module 3 - SAQ Answer Sheets

MIDTERM

Name: JEHOSHAPHAT P. SABA Date: 03-17-2023

Course/Year: BPE 2O

STUDENT ASSESSMENT QUESTIONS (15 pts.) Good luck!

1. What are production and its factors? 5 pts.

Production is the process of creating things and products from components or raw materials. To put it
another way, production employs inputs to produce an output that is fit for consumption, a thing or product
that has value for a customer or end-user or will meet their requirements and wants. Producing goods that
people desire and are ready to pay for helps the economy and enables businesses to keep creating more
and more goods. The following factors include:
 Land as a Factor of Production
 Labor as a Factor of Production
 Capital as a Factor of Production
 Entrepreneurship as a Factor of Production

2. Explain briefly the cost of production and its types. 5 pts.

Cost of production refers to the overall expense paid by a company to provide a particular amount of a
good or service. Costs associated with production may include labor, raw materials, or consumable
supplies. The costs paid to acquire the components of production—such as labor, land, and capital—
necessary for a product's manufacture are referred to as the cost of production in economics.

In the process of creating a product or providing a service, firms may incur a variety of production-related
expenditures. Here are a few of them:
 Fixed costs
 Variable costs
 Total Cost
 Average Cost
 Marginal cost

3. Differentiate production planning and production scheduling. 5 pts.

Production scheduling is the process of allocating available resources to production processes and events,
whereas production planning is the act of creating a roadmap for the design and manufacturing of a certain
good or service.
 SHEPHERDVILLE COLLEGE
Talojongon, Tigaon, Camarines Sur
College of Education Department
Second Semester
AY 2022 – 2023
___________________________________________________________________________________

THE ENTREPRENEURAL MIND

PRODUCTION OF GOODS AND SERVICES

Module 3 - SAQ Answer Sheets

MIDTERM

Name: JEHOSHAPHAT P. SABA Date: 03-17-2023

Course/Year: BPE 2O

EVALUATION (10 pts.)

Answer the question below.

Explain the significance of production planning and scheduling in business operations.

Production planning is crucial because it establishes an effective manufacturing process based on

organizational and customer requirements. It improves both procedures that are dependent on the customer,
like timely deliveries, and activities that are independent of the customer, like manufacturing cycle times.

The distribution of resources to production processes and events is known as production scheduling. The
mapping of real resources to the production plan created for them is essentially what it is. Scheduling is used
to arrange the utilization of production resources, including equipment and labor, as well as processes and
material procurement. A production plan cannot be created without scheduling. The ultimate goal of production
strategies is to satisfy client demand. The creation of the most effective production plan is the aim of a
production schedule.