ACCA Applied Knowledge · Management Accounting · Presenting information
Monthly sales of three products are to be presented to the board: Alpha $40,000, Beta $35,000 and Gamma $25,000. The aim is to show each product's share of total sales of $100,000. Which presentation is MOST suitable?
A pie chart is most suitable, showing Alpha 40%, Beta 35% and Gamma 25% of the $100,000 total. Pie charts display each component's proportion of a whole. Scatter diagrams, histograms and Z charts serve relationships, continuous frequencies or time trends, not simple shares.
- AA pie chart showing Alpha 40%, Beta 35% and Gamma 25%Correct
- BA scatter diagram of sales against time
- CA histogram with Alpha, Beta and Gamma as continuous classes
- DA Z chart showing cumulative sales
Explanation
A pie chart shows how a total is split into proportions: 40,000/100,000 = 40%, 35% and 25%. A scatter diagram shows relationships between variables, a histogram shows continuous frequency distributions, and a Z chart shows trends over time.
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