Explain Why the Following Statement Is True: "When Constructing a Pie

question 29

Essay

Explain why the following statement is true: "When constructing a pie chart,the frequencies associated with each category must sum to N.Likewise,if working with proportions or percentages,these must sum to 1.0 or 100% respectively."

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus net purchases minus cost of goods sold.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Budgeted Production and Sales

An estimate of the amount of goods a company plans to produce and the sales it expects to achieve within a specific period, typically for planning and control purposes.

Unit Selling Price

The amount of money charged to a customer for a single unit of a product or service.