The BCG Matrix Evaluates an Organization's Various Businesses to Identify

question 52

True/False

The BCG matrix evaluates an organization's various businesses to identify which ones offer high potential and which ones drain organizational resources.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Absorption Costing

This method includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost price.

Selling Price

The amount for which a product or service is sold to customers.