ACCA Applied Knowledge · Management Accounting · Presenting information
A finance manager is preparing a presentation for the board showing how total costs of $800,000 divide between five cost categories, with the aim of showing each category's proportion of the whole. Which chart type is most appropriate?
A pie chart is most appropriate because it shows each of the five cost categories as a proportion of the $800,000 total. Scatter diagrams show relationships between variables, line graphs show trends over time, and Gantt charts plan project activities, so none of those fit the purpose.
- APie chartCorrect
- BScatter diagram
- CLine graph showing trend over time
- DGantt chart
Explanation
A pie chart displays each category as a share of the total, which is exactly the purpose here. A scatter diagram shows relationships between two variables, a line graph shows trends over time, and a Gantt chart schedules project tasks.
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