Forms of production

Forms of production

Subsistence farming is an example of direct production. Image credit weebly.com

Subsistence farming is an example of direct production. Image credit weebly.com

ZIMSEC O Level Commerce Notes: Forms of Production

Direct production
-This is when one produces goods and services for their own consumption for example subsistence farming or a tailor making their own dress

Advantages

  • Goods are tailor made according to one’s own taste.
  • Leads to self-satisfaction
  • Saves on labour costs
  • Resources are fully used

Disadvantages

  • Poor quality goods are produced as one is unlikely to have all the expertise required
  • Lack of other related skills
  • Does not satisfy some of the basic needs
  • Lack of variety
  • It takes a long time to complete the job

Indirect production
-This is when one spends his/her entire time in one occupation and then exchanges what he/she has made with others so as to satisfy his/her unfulfilled needs.

Advantages

  • Goods are produced in large quantities
  • Goods are produced in surplus
  • The goods are usually of higher quality than in the case of direct production
  • Leads to specialisation, standardisation and simplification
  • Leads to a wide variety of goods.

To access more topics go to the Commerce Notes page.

By |2017-01-17T11:21:30+00:00June 23rd, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|Comments Off on Forms of production

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.
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