The Growth Rate for the IMac Desktop, Which Has a Small

question 94

Multiple Choice

The growth rate for the iMac desktop, which has a small relative market share in the desktop market, has slowed down in recent years. Although sales have dropped by approximately 3 percent, it remains popular among graphic designers. Given these conditions, in which quadrant of the BCG matrix would the iMac most likely fall?

• A)upper left quadrant because although its growth rate has dropped, it still remains popular among graphic designers
• B)upper right quadrant because although it has a small relative market share, it is part of a high-growth market
• C)lower left quadrant because although its sales have dropped, it still has high market share among graphic designers
• D)upper left quadrant because it is a heavy resource investment
• E)lower right quadrant because it is in a low-growth market and has a relatively low market share

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Definitions:

Joint Products

Products that are produced together from the same process or raw materials but are sold as separate items.

Joint Cost Allocation

The process of assigning the costs of a production process that yields multiple products to those products in a rational and consistent manner.

Split-Off

A point in the manufacturing process where multiple products are generated from a single process or input.

Separable Processing Costs

Costs that are incurred after the split-off point where multiple products are generated from a common process and can be directly attributable to each product.