The Advantages of Diagrammatic Presentation
The advantages of diagrammatic presentation of cost data are as follows:
1. Diagrams and charts create the costing data simple and simply intelligible. One gets a clear picture in short time of anything is being presented by them.
2. Visual aids attract the reader and leave a lasting impression upon him. The data are usually not interesting but the pictorial presentation has the psychological benefits of catching the eyes and mind of the person who reads.
3. Data about, costs of a product for different companies, costs of different products, components of cost of a product etc. can be efficiently compared by diagrams and graphs. The comparative study indicates the significance of relevant factors and helps in analysing and drawing inferences from the data.
4. The tendencies and trends for the future are portrayed effectively by graphs and charts. It allows the management to forecast on a proper basis.
5. Visual aids ease one from mental strain that may otherwise be there on account of going via figures. So they save the precious time and energy of top level management.
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