With the Arrival of Tablet Devices, Such as Apple's IPad

question 137

Multiple Choice

With the arrival of tablet devices, such as Apple's iPad in 2010, growth in the global PC industry slowed considerably and actually saw negative growth by 2015. If a firm offering a range of PCs had slightly increased its global unit market share of PC sales from 10 to 12 percent but still was not the industry leader, the company should be concerned that this product is a

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

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Definitions:

Fixed Overhead

Regular, predictable costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Overhead

Costs that vary directly with the level of production or business activity.

Direct Labor

The workforce directly involved in manufacturing products or delivering services, whose costs are directly attributable to the production.

Direct Materials

Materials that can be directly attributed to the production of specific goods or services and are an essential component of finished products.