Interpreting Business Data Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

  • Look at the question or prompt on each card and try to remember the answer before flipping it over.
  • Check the answer and make a note of any cards you find challenging and need to go over more.

3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
  • Regularly review all the flashcards to help you better understand and retain the information over time.

Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What does an upward trend in a sales line graph show?

Sales are rising over time.

What is the difference between a trend and a fluctuation?

A trend is the overall direction over time. A fluctuation is a short-term rise or fall around that trend.

What is an anomaly (outlier) in business data?

A result that does not fit the pattern. It may be due to error or a one-off event.

What does a positive correlation between advertising spend and sales mean?

When advertising spend goes up, sales tend to go up too.

Does a correlation prove that one factor causes the other?

No. It only shows they move together, not that one makes the other happen.

How can you spot seasonality in monthly sales data?

Look for regular peaks and dips at the same time each year.

If a firm’s market share rises from 20% to 25%, what does this suggest?

The firm has a bigger share of market sales than before. It likely gained sales from rivals.

In a budget, what is a favourable variance?

Actual results are better than planned. Revenue is higher or costs are lower.

In a budget, what is an adverse variance?

Actual results are worse than planned. Revenue is lower or costs are higher.

What does a negative net cash flow in a month show?

More cash left the business than came in. The firm may struggle to pay bills.

On a break-even chart, what is the margin of safety?

The gap between actual (or expected) output and break-even output. It shows how much sales can fall before a loss.

What should you check about data before using it to make a decision?

Check the source, date, and sample size. Look for bias and errors.