SS1 First Term Commerce Lesson Note – Production

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WEEK 5

SUBJECT: COMMERCE

CLASS: SS1

TOPIC: PRODUCTION

CONTENT:

• Meaning of Production
• Classification of Production

SUB-TOPIC 1: MEANING OF PRODUCTION AND CLASSIFICATION PRODUCTION

The term production refers to the creation of goods and services to satisfy human wants. Production also means the transformation of raw materials into finished goods and their distribution to the consumer to satisfy human wants. It can also be referred to as the creation of utility. Production is not complete until the goods and services get to the final consumer. All goods and services must possess utility, which that they must be capable of satisfying certain human wants.

DIAGRAM SHOWING CLASSIFICATION OF PRODUCTION

EVALUATION

1a. What is production?

1b. With the aid of a diagram shows the classification of production.

SUB TOPIC 2: CLASSIFICATION OF PRODUCTION

STAGES OR TYPES OF PRODUCTION

Production is grouped into two major categories. These are direct and indirect production.

(a) Meaning of Direct Production

Direct Production is the type of production in which an individual produces goods and services only for the family use or consumption. The goods produced are not for sale and usually family labour is employed in the production process. Direct production is in small scale.

(b) Meaning of Indirect Production

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