Introduction of Diagrammatic and Graphic Presentation of Cost Information
It has previously been stated in the earlier chapter that costing data can be presented through the cost accountant to the management in the form of reports-routine or unique diagrams and charts etc.
Even a report might consist of some charts and diagrams besides specific narrative and descriptive facts. Diagrams and charts show information in an easy and effective way. They available the information looks impressive and attractive. The person who reads is relieved from the mental strain that he might have to go through while reading a report that contains purely figures.
They leave a memorable impression on the mind. As per to A.L. Boddingtons, The wandering of a line is very powerful in its influence on the mind than a tabulated statement, it depicts what is taking place and what is likely to happen, just as quickly as the eye is able of working. Though, the diagrams and graphs have their own limitations.
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The statement of cash flows is a fairly current addition to the annual published financial statements. Companies were only needed to publish a statement of financial position (balance sheet) and an income statement.
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