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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 retail company wants to show how sales of one product changed month by month over a year. Which graphic is most suitable for showing this trend?

A line chart with months on the horizontal axis is most suitable, because it joins data points across time and makes the direction and size of change visible. A pie chart shows shares of a whole at one moment, not a trend over a year.

  1. ALine chart with months on the horizontal axisCorrect
  2. BPie chart with twelve slices
  3. CFlow chart of the sales process
  4. DOrganisation chart of the sales team

Explanation

A line chart connects points over time and makes rises and falls easy to see. A pie chart shows parts of a whole at one point in time, so twelve slices would hide the trend. Flow charts and organisation charts show processes and structures, not numeric change.

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