Study Commerce notes on Production and Commerce for Secondary. Useful for revision, homework, and exam preparation in Zimbabwe.
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This is the Commerce notes. It is a free notes for revision.
Production And Commerce What is commerce? Commerce is study related to distribution of products from the producer (point of production) to the consumer (point of consumption). Products, Production, Producer and Consumers Products are the goods and services produced by a company, to satisfy needs and wants of customers. Production is any activity which serves to satisfy human needs and wants. Producer is a person or company who produces products to satisfy need and wants. Consumers are the ultimate users of goods and services produced. Creation of Utility Utility of form: Any activity that changes the form of a product so that it becomes more useful to the consumer for example conversion of wood into more useful furniture. Utility of place: Any activity that transfers the goods or services to a location which is within easier assess to the consumer, for example transfer of goods from far off factories to nearby retail shops. Utility of time: Any activity that causes the availability of a product on time when it is needed, for example availability of wheat through out the year. Needs and Wants Needs are the things necessary for living, that is food, shelter and clothing. Wants are those goods and services which are not compulsory for living but makes life easier. Specialization/Division of Labour Specialization or Division of Labour is breaking down of a productive activity into simpler tasks so that a person specialist in that task can perform it. Advantages of Specialization - Concentration on work increases. - Increased out put per worker. - Mechanization can occur. - Economy of scale can be achieved (low average cost of product). - Less time consuming. - Better quality of products.