The Major Benefit of the BCG Matrix Is That It

question 102

True/False

The major benefit of the BCG Matrix is that it draws attention to the cash flow, investment characteristics, and needs of an organization's various divisions.

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Definitions:

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.

Investing Activities

Refers to the portion of a company's cash flow statement that reflects the amount of money spent on or generated from investments in long-term assets, such as property, plant, equipment, or securities.

Free Cash Flow

A measure of financial performance calculated as operating cash flow minus capital expenditures, reflecting the amount of cash a company can generate after maintaining or expanding its asset base.

Operating Cash Flow

Cash generated from a company's normal business operations.