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ACCA Applied Knowledge · Management Accounting · Presenting information

A Z chart is drawn for a company's sales for 2024. Monthly sales figures are plotted along with two other lines. Which set of lines forms the three parts of the Z chart?

A Z chart consists of the monthly figures, the cumulative year-to-date figures and the moving annual total. Plotted together they form a shape like the letter Z, showing current performance, progress through the year and the underlying long-term trend.

  1. AMonthly figures, cumulative figures and moving annual totalCorrect
  2. BMonthly figures, budget line and variance line
  3. CCumulative figures, trend line and seasonal line
  4. DMonthly figures, median line and range line

Explanation

A Z chart combines the individual monthly values, the cumulative year-to-date total and the moving annual total. Together they form a Z shape. The other options include elements that are not part of the standard Z chart.

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