ACCA Applied Knowledge · Management Accounting · Presenting information
A finance manager wants to show the board how total sales of $800,000 are divided between four product lines, so that the relative proportion of each line is clear. Which presentation method is MOST suitable?
A pie chart is most suitable because it shows how a total is divided into component parts, making each product line's share of the $800,000 visible. Line graphs show trends, scatter diagrams show relationships between variables, and histograms show frequency distributions.
- APie chartCorrect
- BScatter diagram
- CLine graph showing sales over time
- DHistogram of sales frequencies
Explanation
A pie chart displays how a whole is split into parts, so proportions of each product line are easy to compare. A line graph shows trends over time, a scatter diagram shows correlation between two variables, and a histogram shows frequency distributions.
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