Sales Are Tracked During the Past Year in the Graph

question 82

Multiple Choice

Sales are tracked during the past year in the graph below. What would be the most effective strategy to allow management to more clearly discern monthly trends in sales?

• A)Remove the total value from being included in the graph.
• B)Have the axis on the left show more detailed grid lines between 0 and 100
• C)Show the trend line in a more vivid color.
• D)Add labels to each of the graphed data points.
• E)Add minor grid lines throughout the graph making values more clear.

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Definitions:

Operating Costs

Expenses incurred in the normal operation of a business, including costs such as rent, utilities, payroll, and materials.

Useful Life

The estimated duration of time that an asset is expected to be functional and economically viable for its intended purpose.

Target Costing

A pricing method that involves subtracting a desired profit margin from a competitive market price to determine the maximum cost of production.

Return on Investment

A financial metric evaluating the profitability or effectiveness of an investment, calculated by dividing net profit by the investment's cost.