Which Type of Graph Is the Most Commonly Used to Display

question 16

Multiple Choice

Which type of graph is the most commonly used to display trends in financial data?

• A) pie chart
• B) scatterplot chart
• C) bar chart
• D) stochastic chart

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Definitions:

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.

Pretax Income

Income earned by a company before taxes are deducted, indicating the profitability of a company's core operations.

Sales Increase

The rise in the amount of products or services sold by a company, usually compared to a previous period.

Contribution Margin

The amount by which sales revenue exceeds variable costs, representing the contribution towards covering fixed costs and generating profit.