CMA Foundation · Fundamentals of Business Laws and Business Communication · Use of Graphics and References for Business Communication
Ravi prepares a bar chart for a board presentation, but the vertical axis begins at ₹95 lakh instead of zero, so a rise from ₹98 lakh to ₹100 lakh looks like a huge jump. Which design principle has been violated?
The principle violated is honest, proportional representation. Starting the bar chart axis at ₹95 lakh instead of zero truncates it, so a small rise appears huge. Bar lengths must be proportional to values, so a zero baseline is needed to avoid misleading the audience.
- AUsing a title that is too short
- BTruncating the axis so that the visual proportions mislead the readerCorrect
- CShowing data labels on the bars
- DUsing the same colour for all bars
Explanation
Bar length should be proportional to the value, which requires a zero baseline. Starting at ₹95 lakh exaggerates a small change and misleads the audience. Data labels and consistent colour are acceptable practices and are not the problem here.
Did you get it right without looking?
One question tells you little. A timed set on Use of Graphics and References for Business Communication shows your real accuracy, how long you take and where you lose marks.
More Use of Graphics and References for Business Communication questions
- Which element is essential in a well-prepared graph or chart in a business report so that readers can interpret it correctly without reading…
- Meera wants to show how monthly production of Kaveri Motors changed from April to March over one financial year so that readers can see the …
- An analyst has precise figures of expenses under 12 heads across 3 years and the readers need to look up exact values and compare them row b…
- A report contains a chart that uses a colour-coded series: red, orange and green lines for three regions. The report will be circulated in b…
- A report uses a bar chart whose vertical axis starts at 90 instead of 0, making a small rise in profit look very large. What is the main com…
- 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 suppo…