Which of the Following Does NOT Accurately Reflect a Problem

question 85

Multiple Choice

Which of the following does NOT accurately reflect a problem with the BCG matrix approach?

• A) It focuses on planning for the future.
• B) It can be costly to conduct.
• C) It can be time consuming to implement.
• D) It is difficult to define SBUs and measure market share and growth.
• E) It focuses on classifying current businesses.

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Definitions:

Contribution Percentages

The portion of sales revenue that is not consumed by variable costs, indicating how much contributes to covering fixed costs and generating profits.

Departmental Contributions

The specific financial or operational impact of individual departments within a company toward its overall success.

Uncontrollable Expenses

Uncontrollable expenses are costs that cannot be changed or influenced in the short term by the actions of managers or individuals within the organization.

Joint Cost

A cost that is incurred in producing multiple products where the costs cannot be easily separated for each product produced.