ACCA Applied Knowledge · Management Accounting · Presenting information
A management accountant wants to show how total annual sales of $800,000 are split between four product lines so that managers can quickly compare each line's share of the whole. Which presentation is most suitable?
A pie chart is the most suitable choice because it shows each product line as a slice of the total sales, allowing managers to compare proportions at a glance. The other options show relationships, trends over time or frequency distributions, not shares of a whole.
- APie chartCorrect
- BScatter diagram
- CHistogram with unequal class widths
- DZ chart
Explanation
A pie chart shows each component as a proportion of a total, so it suits comparing the share of four product lines. A scatter diagram shows the relationship between two variables. A Z chart tracks performance over time. A histogram shows frequency distributions of continuous data.
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