Which Type of Chart Would Best Show Each Division's Relative

question 29

Multiple Choice

Which type of chart would best show each division's relative profit within a corporation?

• A)Pie chart.
• B)Map.
• C)Histogram.
• D)Scatterplot.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are deducted, but before interests and taxes are subtracted.

Fixed Cost

Costs that do not change with the level of production or sales activity, such as rent or salaries.

Segment Margin

The amount of profit or loss produced by a particular segment of a business, considering only the revenues and expenses directly attributable to that segment.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profit.