When a Division of an Organization Has a High Relative

question 42

Multiple Choice

When a division of an organization has a high relative market share and is in a fast- growing industry,it is called a

• A)cat.
• B)question mark.
• C)dog.
• D)cash cow.
• E)star.

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Definitions:

Operating Expenses

Costs related to the day-to-day functions of a business outside of direct production costs, such as rent, salaries, and utilities.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered variable costs.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in creating the product.

Work in Process Inventory

Goods in various stages of production but not yet completed, representing one of the components of a manufacturing company's inventory.