The Purpose of Business Portfolio Analysis Is to

question 57

Multiple Choice

The purpose of business portfolio analysis is to

• A)add or delete product line and brand extensions.
• B)search for growth opportunities from among current and new markets as well as current and new products.
• C)alter a product's characteristic, such as its quality, performance, or appearance, to increase its value to customers and increase sales.
• D)determine the appeal of each strategic business unit or offering and then determine the amount of cash each should receive.
• E)seek opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

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Definitions:

Dollar-Value LIFO

Dollar-Value LIFO method is an inventory costing method that uses the LIFO principle coupled with grouping inventory into pools based on dollar value instead of physical units.

Base Year Cost

The initial cost of an asset or investment, used as a reference point to measure the cost growth or performance over time.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over time, used to gauge inflation or deflation.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) principle, but accounts for changes in inventory value due to inflation by measuring inventory in dollar amounts rather than units.