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CMA Foundation · Fundamentals of Business Laws and Business Communication · Use of Graphics and References for Business Communication

A finance team at an Indian firm wants to show how the monthly sales of one product changed over the last 12 months. Which graphic is best suited to display this trend clearly?

A line graph with months on the horizontal axis is best, because it plots values over time and lets readers see the direction and pattern of change. A pie chart shows shares of a whole at one moment, so it cannot display a twelve-month trend clearly.

  1. ALine graph with months on the horizontal axisCorrect
  2. BPie chart with one slice for each month
  3. COrganisation chart showing the sales team
  4. DFlow chart of the sales approval process

Explanation

A line graph connects points over time, so it shows rise, fall and direction of a trend. A pie chart shows parts of a whole at one point in time, so twelve slices would hide the trend and would be hard to compare.

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