Using the BCG Matrix

question 59

Multiple Choice

Using the BCG matrix:

• A)Assumes that each business in the portfolio has strong synergies with every other in the group
• B)Has gained in popularity in recent years
• C)Yields the possibly surprising result that well-known firms like Pepsi may be 'dogs' because they are No.2 in a mature industry
• D)Has been abandoned in recent years, because it is too complex

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Definitions:

Cost of Goods Sold

Cost of goods sold represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Finished Goods Inventory

Finished and market-ready products still awaiting purchase.

Cost of Goods Available for Sale

The total cost of a company's inventory at the beginning of the period plus the cost of any goods produced or purchased during the period.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.