ACCA Applied Knowledge · Management Accounting · Presenting information
A company wants to show three years of quarterly sales to a manager, so that the trend in sales, the cumulative total for the year and the moving annual total are all visible on one graph. Which type of graph does this describe?
A Z chart. It plots the actual period results, the cumulative year-to-date total and the moving annual total on one graph, producing a Z shape that shows trend and seasonality together. An ogive only shows cumulative frequency and a pie chart shows proportions.
- AZ chartCorrect
- BOgive
- CLorenz curve
- DPie chart
Explanation
A Z chart plots the individual period results, the cumulative total to date and the moving annual total on one graph, forming a Z shape. An ogive is a cumulative frequency curve and does not show moving annual totals.
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