Which of the Following Is NOT True When Creating a Pie

question 4

Multiple Choice

Which of the following is NOT true when creating a pie chart?

• A) There should be no more than eight parts
• B) The total of the parts does not always equal 100 percent
• C) Different colors or textures are used to distinguish the parts
• D) Each portion should always be proportional to the amount it represents

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Definitions:

Fixed Expense

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

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products based on an activity base, such as machine-hours or direct labor-hours, reflecting changes in cost with production volume.

Fixed Manufacturing Overhead

Costs related to the production process that remain constant regardless of the production volume, such as rent and salaries of managers.

Selling and Administrative Expense

The aggregated total of all expenses associated with selling a company's products and services, as well as managing the day-to-day operations.