Which of the Following Is True About Business Units Categorized

question 67

Multiple Choice

Which of the following is true about business units categorized as stars in a BCG matrix?

• A) They are low market share units within slow growing industries.
• B) They are high market share units within slow growing industries.
• C) They are high market share units within fast growing industries.
• D) They are low market share units within service industries.
• E) They are low market share units within fast growing industries.

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Definitions:

Absorption Costing

A method of inventory costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Direct Materials Costs

Costs directly traceable to the production of a product, including raw materials and component parts.

Direct Conversion

The process of changing one form of energy, material, or resource directly into another without intermediate stages.