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ACCA Applied Knowledge · Management Accounting · Summarising and analysing data

A manager wants to show how total annual sales of Zenith Ltd, 800,000 in total, are split between four product lines so that each line's share of the whole is clear. Which chart is the most suitable?

A pie chart is most suitable because it shows each product line's share of total sales as a slice of a whole. Line graphs show trends over time, scatter diagrams show relationships between variables, and histograms show frequency distributions of continuous data.

  1. APie chartCorrect
  2. BScatter diagram
  3. CHistogram
  4. DTime series line graph

Explanation

A pie chart displays each component as a proportion of a total, so it suits showing the split of sales between four product lines. A time series graph shows change over time, a scatter diagram shows a relationship between two variables, and a histogram shows a frequency distribution of continuous data.

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