The General Rule Is to Discontinue a Service When Its

question 103

True/False

The general rule is to discontinue a service when its total fixed costs are less than its avoidable fixed costs.

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Definitions:

Question Marks

Products or businesses that operate in high-growth markets but have low market share, often requiring significant investment to improve their position.

Market Share

The segment of a market held by a certain company or product.

Market Growth

An increase in the demand for a particular product or service over time, which can be influenced by factors like changes in consumer preference, population growth, and technological advancement.

BCG Matrix

A strategic business tool developed by the Boston Consulting Group that uses market growth rate and market share to evaluate the relative performance of products or business units.