DA0-002 Visualization and Reporting Practice Question
Which TWO are examples of leading indicators in a business context? (Select two.)
⚠ Common exam trap
The trap is that revenue-adjacent metrics like profit margin and monthly revenue feel important and are often mistaken for leading indicators, but they are outcomes (lagging) — the exam tests whether you can distinguish predictive inputs from reported results.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Customer engagement score
Leading indicators are forward-looking metrics that predict future performance, and option C (customer engagement score) qualifies because engagement levels today tend to forecast future retention, loyalty, and purchasing behavior. Option D (number of qualified leads) is also a leading indicator since a healthy pipeline of qualified prospects predicts future sales and revenue before those deals close. By contrast, option A (employee turnover rate) is a lagging indicator because it measures past attrition that has already occurred, and options B (net profit margin) and E (monthly revenue) are lagging outcome metrics that report financial results after the fact rather than predicting them.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Employee turnover rate
Why it's wrong here
Employee turnover rate is lagging: it records departures that have already happened, reflecting past workforce conditions rather than forecasting them. It is tempting because HR metrics are often discussed as predictive, and turnover is the correct indicator when assessing retention outcomes after the fact.
- ✗
Net profit margin
Why it's wrong here
Net profit margin is lagging: it is calculated from completed revenue and costs, so it summarises performance already realised. It is tempting because profitability is treated as a health signal, and it is the correct measure when the question asks for financial results reported after a period closes.
- ✓
Customer engagement score
Why this is correct
Customer engagement score measures current sentiment and activity that precedes future purchasing behaviour, so it predicts later revenue rather than reporting it. That forward-looking quality is what distinguishes leading indicators from lagging ones such as quarterly sales totals.
- ✓
Number of qualified leads
Why this is correct
Qualified leads counts prospects entering the pipeline before conversion occurs, so it forecasts future closed revenue rather than confirming past results. This predictive timing is the defining trait of a leading indicator, unlike lagging measures such as monthly revenue booked.
- ✗
Monthly revenue
Why it's wrong here
Monthly revenue is a lagging indicator: it reports income already earned, so it confirms past performance rather than predicting it. It is tempting because revenue growth feels forward-looking, and it is the correct measure when the question asks for outcomes used to evaluate results already achieved.
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Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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