AS Business Studies: Tramsforming Resources in to Goods and Services

Hey, here are some notes mainly for people taking the AQA AS Business Studies Unit 1 exam but can be used for other exams too. All the notes are based against the specification. I hope this helps you to revise! Please rate and comment on how to improve! :D

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  • Created by: I P B
  • Created on: 13-11-10 21:24

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Transforming Resources
into Goods and Services

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Transforming Resources into This topic should be considered
Goods and Services within the context of the
tertiary, secondary and primary
· inputs, outputs and the industries.
nature of the transformation of
resources into finished Products

· adding value.

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Input = something that contributes to the production of a product or service

In order to make products and deliver services, a business needs resources ­ i.e.
inputs. These are known as the Four Factors of Production

Labour ­ the time and effort of people involved in the business:…

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The outputs of business activities are reflected in the products and services sold to
customers. It is quite useful to think of ways in which similar business activities can
be grouped based on those outputs. Economists and business examiners alike
have traditionally categorised the outputs from the transformation process…

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Adding Value
Adding value = the difference in value between the price of the finished product
and the cost of materials used

How is value added?
­ Production ­ changing raw materials into products of use ­ e.g. wood, nails
and glue used to make a chair.
­ High quality…

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Exam Tips
As the UK economy moves away from agriculture and low cost manufacturing and
towards services and niche manufacturing, the ability to add value increases.

Easier to add value at the tertiary stage than at the primary stage.

In the tertiary sector, there is still a process of transforming…


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