If a pie chart shows that 15% of a company's budget is allocated to marketing, w

Practice Questions

Q1
If a pie chart shows that 15% of a company's budget is allocated to marketing, which of the following could be inferred?
  1. Marketing is the largest expense.
  2. The budget for marketing is less than for other departments.
  3. Marketing is not a priority for the company.
  4. The company has a balanced budget.

Questions & Step-by-Step Solutions

If a pie chart shows that 15% of a company's budget is allocated to marketing, which of the following could be inferred?
  • Step 1: Understand that a pie chart represents parts of a whole, with each part shown as a percentage.
  • Step 2: Note that the pie chart indicates that 15% of the company's budget is for marketing.
  • Step 3: Recognize that if marketing is 15%, it means that 85% of the budget is allocated to other areas.
  • Step 4: Consider that if no other department has a smaller percentage than marketing, then marketing is likely less than other departments.
  • Step 5: Conclude that since marketing is only 15%, it is reasonable to infer that other departments likely have larger budget allocations.
  • Budget Allocation – Understanding how a company's budget is divided among different departments or functions.
  • Pie Chart Interpretation – Interpreting data represented in a pie chart format, particularly the significance of percentage allocations.
  • Inferences from Data – Making logical conclusions based on the given data, while considering the context.
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