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ACCA Applied Knowledge · Management Accounting · Presenting information

Which of the following is the BEST reason for including a clear title, labelled axes and units on a chart in a management report?

The best reason is that titles, labelled axes and units help the reader interpret the information accurately and avoid misunderstanding. They clarify what is being shown. They do not add data, remove the need for explanatory commentary, or substitute for checking the accuracy of the figures.

  1. AIt allows the chart to be used without any supporting text
  2. BIt helps the reader interpret the information accurately and avoids misunderstandingCorrect
  3. CIt increases the amount of data that can be shown
  4. DIt removes the need to check the data for errors

Explanation

Titles, labelled axes and units make the chart understandable and reduce the risk of misinterpretation. They do not remove the need for commentary, do not add data, and cannot correct errors in the underlying numbers.

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