ACCA Applied Knowledge · Management Accounting · Presenting information
A management accountant wants to show how total monthly sales of Delta Co (in $) are split between four product lines, so that readers can see each product's share of the whole. Which chart is most suitable?
A pie chart is most suitable because it displays each product line's sales as a slice of the total, making proportions easy to compare. Line graphs show trends over time, scatter diagrams show relationships between variables, and histograms show frequency distributions.
- APie chartCorrect
- BScatter diagram
- CLine graph showing a time trend
- DHistogram
Explanation
A pie chart shows each category as a proportion of a total, which is exactly what is needed for sales split by product line. A line graph shows change over time, a scatter diagram shows the relationship between two variables, and a histogram shows a frequency distribution of continuous data.
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