SBUs with a High Share of High-Growth Markets That May

question 387

Multiple Choice

SBUs with a high share of high-growth markets that may not generate enough cash to support their own demanding needs for future growth are referred to as __________.

• A)dogs
• B)cash cows
• C)question marks
• D)stars
• E)hedgehogs

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Definitions:

Variable Overhead

Costs that fluctuate with production volume, such as utilities or indirect materials, which are not directly tied to any single product.

Direct Materials

Basic substances that can be directly linked to the manufacture of particular products or services.

Direct Labor-Hours

A measure of the amount of time workers spend on a particular job or production process, used to assign labor costs to units of output.

Variable Overhead

Generic term for the costs of production that fluctuate with the level of output, including expenses like utilities or raw materials.