The Boston Consulting Group (BCG)business Portfolio Analysis Requires an Organization

question 302

Multiple Choice

The Boston Consulting Group (BCG) business portfolio analysis requires an organization to locate the position for each of its strategic business units (SBUs) on a growth-share matrix.In a growth-share matrix,the horizontal axis of the matrix indicates

• A)the annual rate of growth of the SBU's industry.
• B)the relative dollar market share of the largest competitor.
• C)the annual rate of growth of the firm's largest competitor.
• D)the relative unit market share of the smallest competitor.
• E)the annual rate of growth of the firm itself.

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Definitions:

Mixed Cost

A cost composed of a fixed component and a variable component, changing in total with the level of activity but remaining constant on a per unit basis up to a certain production volume.

Variable Manufacturing Cost

The sum of all costs that vary with the level of manufacturing output, including direct materials, direct labor, and variable overhead.

Production Volume

The total quantity of goods or services produced by a company during a specific period.

Variable Manufacturing Cost

This includes costs that vary directly with the level of production output, such as raw materials and direct labor.