CAT / FIA FMA Syllabus A. The Nature, Source And Purpose Of Management Informa - Presenting information - Notes 2 / 2
Different ways how information can be presented
We will be looking at different ways how information can be presented through the use of tables, charts and graphs.
Scatter graphs will be described in detail when discussing forecasting methods later on in the course notes.
Tables
Tabulation is the process of presenting data in the form of a table – an arrangement of rows and columns.
The purpose of tabulation is to summarise the information and present it in a more understandable way.
Rules of Tabulation
Title
- the table must have a clear and self-explanatory title.
Source
- the source of the material used in drawing up the table should be stated (usually by way of a footnote).
Units
- the units of measurement that have been used must be stated.
Headings
- all column and row headings should be clear and concise.
Totals
- these should be shown where appropriate, and also any subtotals that may be applicable to the calculations.
Percentages and ratios
- these are sometimes called derived statistics and should be shown, if meaningful, with an indication of how they were calculated.
Column layout
- for ease of comparison columns containing related information should be adjacent and derived figures should be adjacent to the column to which they refer.
Simplicity
- the table should be as concise as possible.
Layout
- wherever possible ensure that the table is set up so that there is no need to turn the page. This will affect the choice of columns and rows.
Charts and Graphs
Clarity of presentation of information can be further improved if data is presented in the form of charts or graphs (diagrams).
The following are the principal types of diagrams:
Bar charts
Line graphs
Pie charts
Scatter graphs
Bar Charts
A bar chart is a widely used method of illustrating quantitative data.
Quantities are shown in the form of bars on a chart, the length of the bars being proportional to the quantities.
1. Simple bar charts
A simple bar chart consists of one or more bars, in which the length of each bar indicates the size of the corresponding information.
ABC Ltd: Sales Figures
| a($) | b($) | c($) | total($) | |
| 2009 | 300000 | 400000 | 500000 | 1200000 |
| 2010 | 400000 | 500000 | 600000 | 1500000 |
| 2011 | 300000 | 600000 | 400000 | 1300000 |
2. Component bar chart
A component bar chart is used when each total figure in the data is made up of a number of different components and it is important that these component elements are shown as well as the total figure.
ABC Ltd: Sales Figures
| a($) | b($) | c($) | total($) | |
| 2009 | 300000 | 400000 | 500000 | 1200000 |
| 2010 | 400000 | 500000 | 600000 | 1500000 |
| 2011 | 300000 | 600000 | 400000 | 1300000 |
3. Percentage component bar chart
ABC Ltd: Sales Figures
| division a | division b | division c | total | |
| 2009 | $300000 25% | $400000 33.33% | $500000 41.67% | $1200000 |
| 2010 | $400000 27% | $500000 33% | $600000 40% | $1500000 |
| 2011 | $300000 23% | $600000 46% | $400000 31% | $1300000 |
4. Compound (multiple) bar charts
Compound bar charts are sometimes termed multiple bar charts.
A compound bar chart is one where there is more than one bar for each sub-division of the chart.
For example if the sales per product for each year are given then for each year there could be a separate bar for each product.
This has obvious similarities to a component bar chart where each component of the total was shown as part of the total bar. However the difference here is that each component has its own bar and is not stacked. It is a suitable format if the total of each component of the bar chart has no significance.
ABC Ltd: Sales Figures
| division a | division b | division c | total | |
| 2009 | $300000 | $400000 | $500000 | $1200000 |
| 2010 | $400000 | $500000 | $600000 | $1500000 |
| 2011 | $300000 | $600000 | $400000 | $1300000 |
Graphs
1. Simple line graphs
In many instances data can be more clearly and understandably presented in the form of a line graph.
The x axis would represent the independent variable whereas the y axis represent the dependent variable.
2. Multiple line graphs
You may be required to plot more than one set of variables on the same graph.
If more than one line is to appear on a graph then they must also be drawn to the same scale and the different line should be clearly indicated by use of a key (e.g. continuous line, broken line, dotted line) or different colour.
Pie Charts
A pie chart is a circular chart divided into sectors, illustrating proportion. In a pie chart, the arc length of each sector (and consequently its central angle and area), is proportional to the quantity it represents.
Together, the sectors create a full disk.
| division a | division b | division c | total | |
| 2011 | $400,000 | $500,000 | $650,000 | $1,550,000 |
| 26% | 44% | 30% | ||
To calculate segment angle:
Value of segment x 360° / Value of total
Division A: 400,000 / 1,550,000 x 360 = 93.6°
Division B: 500,000 / 1,550,000 x 360 = 116.1°
Division C: 650,000 / 1,550,000 x 360 = 151.2°
Pie charts can be an effective way of displaying information in some cases, especially if the aim is to compare the size of a slice with the whole pie.
They work particularly well when the slices represent 25 to 50% of the data, but in general, other charts such as the bar chart or non-graphical methods such as tables, may be more adapted for representing certain information.
In fact, it may be difficult to compare different sections of a given pie chart, or to compare data across pie charts.