According to the BCG Matrix, Poor Products That Compete in Low

question 52

Multiple Choice

According to the BCG matrix, poor products that compete in low growth markets are called which of the following?

• A)Problem children
• B)Cash cows
• C)Pigs
• D)Dogs

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Definitions:

Units

A measure of quantity, such as items or pieces, used in production and inventory contexts.

Mixed Cost

A cost composed of both fixed and variable components, changing in total with activity level but not proportionally.

True Variable Cost

Costs that vary exactly with the level of activity or production volume, including direct materials and some elements of manufacturing overhead.

Fixed Cost

Costs that do not vary with the level of output or sales, remaining constant regardless of the business activity level, such as rent and salaries.