What Is Business Portfolio Planning? Discuss How a Company Might

question 47

Essay

What is business portfolio planning? Discuss how a company might use the Boston Consulting Group's product portfolio analysis method.

Recognize the concept of mass customization and its advantages in production and service delivery.

Understand the concept of residual income and its calculation.

Comprehend the calculation and significance of Return on Investment (ROI).

Grasp the methods for calculating margins and turnovers.

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Definitions:

Job Cost Sheet

An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.

Direct Labor

The wages or costs directly associated with the production of goods or the provision of services, involving labor directly involved in manufacture or service delivery.

Perpetual Inventory

An immediate inventory transaction recording method, utilizing computerized point-of-sale systems and enterprise asset management software for accounting purposes.

Subsidiary Ledgers

Detailed financial books that complement the general ledger by tracking individual accounts or categories, such as accounts payable or receivable.