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CMA Foundation · Fundamentals of Business Laws and Business Communication · Use of Graphics and References for Business Communication

An analyst wants to show the share of five cost heads in a company's total cost of ₹50 lakh in a single pie chart. Which practice best supports clarity?

The best practice is to limit the number of slices, label each with its percentage and use distinct but simple shading. This lets readers grasp the cost shares quickly. Excess colour, 3-D effects, decoration or missing labels distract from the message and reduce clarity.

  1. AUsing ten different bright colours and 3-D effects for emphasis
  2. BLeaving out labels so viewers guess the values
  3. CLimiting slices to a few categories, labelling each with its percentage, and using distinct but simple shadingCorrect
  4. DAdding decorative images behind the chart

Explanation

Clear charts use few categories, direct labels and simple shading so the reader grasps the shares quickly. Excess colours, 3-D effects and decoration distract and can distort perception. Missing labels force guessing and defeat the purpose of the chart.

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