Marketing Managers Can Classify a Firm's Products into Four Basic

question 92

True/False

Marketing managers can classify a firm's products into four basic types: stars, cash cows, dogs, and question marks.

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Definitions:

Return on Investment (ROI)

A measure used to evaluate the efficiency of an investment or to compare the efficiency of several different investments, calculated as net profit divided by the cost of the investment.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Average Operating Assets

The average value of the assets used in the normal course of business to generate operating income, often calculated over a period to assess performance.

Controllable Fixed Costs

Costs that management has the power to influence or change in the short term.