Question

Answer the below question in 30-50 words each

1.When should a table be used to present business performance information?

2. When would the financial manager use a table to present information? List and describe three occasions.

3.When providing business performance information, what are graphics?

4. What advantage do graphs have over tables? List and describe two advantages.

Answer 1

Answer: 1. A table should be used to present a business information when you want to show detailed components not just the headline numbers. For example, if you want to show revenue and its component like COGS, SG&A, gross profit and net profit, you should use tables instead of graph because in tables these numbers are easy to understand and compare year wise. 2. Financial manager would use table to present information: • When he wants to shows detailed information and not just the headlines number. Tables are great way to show detailed component and easy to understand. • When he wants to compare each component contribution in the headline number, he will use table. For example, if he wants to understand the contribution of different products to total revenue, he might use tables. When he wants to present the detailed analysis of each cost component year wise to the senior management. The manager might use tables to show the cost of raw materials, labor and other indirect cost year wise to senior management. 3. The graphics is a term that is used to present information in pictorial form. The business information can be presented in the form of charts, diagrams, graphs, maps, photographs, drawings. Business information like revenue, sales, profit can be presented using graphics. 4. Graphs do have certain advantages over tables. The two advantage of graphs are: Easy to understand: The graphs are easy to understand. Any headline number which is being presented using graphs can be easily presented and is easy to understand for the other person, also comparison of that number is also easy to understand. Present more information in succinct way: Graphs can be used to present more information and their trend can be easily understood. There are different types of graphs which can be used to present different types of information like line charts, bar chart or even charts where each component can be shown as a percentage of a total number like sales.