In the Boston Consulting Group (BCG)model for Analysis of a Firm's

question 130

Multiple Choice

In the Boston Consulting Group (BCG) model for analysis of a firm's strategic business units,or SBUs,the horizontal axis reflects

• A)market growth rate.
• B)marketing efficiencies.
• C)industry attractiveness.
• D)market segment size.
• E)relative market share.

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Definitions:

Standard Activity

A benchmark or base level of activity used for planning, measuring, and controlling performance.

Quantity Standard

A preset benchmark that specifies the expected amount or number of units to be used or produced under normal conditions.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with the level of production output, such as utility costs or indirect materials.

Labor Rate Variance

The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period.