Graphs and Charts for Business Data Class 12: Notes and Solved Questions

What Graphs and Charts for Business Data is about

Weightage: This chapter is in Part B Option II: Computerised Accounting, which a student takes instead of Option I (Analysis of Financial Statements). Computerised Accounting carries 20 of the 80 theory marks together with Overview of Computerised Accounting System, Spreadsheet and Use of Spreadsheet in Business Applications.Source: CBSE Accountancy (055) syllabus 2026-27, Part B Option II: Computerised Accounting

In real board papers: asked in 2 of the 2 board papers we hold (2026 to 2026), on average 4.5 marks per paper. See the questions

Key concepts

Graphs, charts and diagrams

NCERT section 4.1

A graph is a pictorial representation of data with at least a two-dimensional relationship, so it has at least two axes: the X-axis (usually horizontal, categories) and the Y-axis (usually vertical, values). A graph may have a single line or several lines, told apart by line style or colour.

A pie chart shows the sub-groups of a single variable as slices of a whole. A bar diagram compares two or more variables. In Excel, "chart" covers all of these.

Worked example

Suppose you want to show how a firm's total expenses of one year are divided among salaries, rent, power and advertising. Which diagram suits best? [1 mark]

Try it first, then show the solutionSolution

1. The data are parts of one total for one year: a single variable split into sub-groups.

Answer: A pie chart.

Basic steps to create a chart in Excel

NCERT section 4.2

• Step 1: enter the data in a worksheet with row and column headings (for example quarters as rows and products as columns), with totals if needed.
• Step 2: select the data range (including headings) and choose a chart type and sub-type from the Insert tab → Charts group (column, line, pie, bar, area, scatter, other charts). Excel draws the chart at once.

To chart a different view (such as total sales for each quarter), reorganise or select the relevant rows and columns and repeat step 2. Charts can combine more than one chart type.

Worked example

Suppose quarterly sales of six products are in A1:E7 with products in column A and quarters in row 1. List the steps to draw a column chart comparing products. [3 marks]

Try it first, then show the solutionSolution

1. Select A1:E7 including headings.
2. Insert tab → Charts group → Column → choose a sub-type (clustered column).
3. Add a chart title and axis titles from Chart Tools; use Switch Row/Column if you want quarters on the axis instead.

Answer: Select data → Insert → Column chart → add titles (switch rows/columns if needed).

Elements of a chart

NCERT section 4.2.1

• Chart area: the whole chart with all its elements.
• Plot area: the area bounded by the axes (X and Y in 2-D; X, Y and Z in 3-D).
• Data points / data markers: the individual values shown as bars, columns, points or slices. Markers of the same colour form a data series.
• Horizontal (category) axis and vertical (value) axis: X usually holds categories; Y holds values. 3-D charts add a depth (series) axis, Z.
• Legend: identifies each data series by colour or pattern.
• Chart title and axis titles: descriptive text.
• Data labels: show the value or details of a data point on the chart.

Radar charts have no horizontal axis, and pie and doughnut charts have no axes at all.

Worked example

Suppose a column chart shows sales of three products for four quarters, each product in a different colour. What tells the reader which colour is which product, and what is each set of same-coloured columns called? [2 marks]

Try it first, then show the solutionSolution

1. The legend identifies the colours.
2. Same-coloured markers form a data series.

Answer: The legend; a data series.

Types of charts and when to use them

NCERT section 4.2.3

Excel offers 2-D charts (line, bar, column, area, surface, multiple-line, radar, XY scatter, bubble) and 3-D versions with a depth axis. Choose by the message you want to give:

Chart	Best used for	Example
Column / bar	Comparing values of categories or periods (bar is horizontal)	Sales of six products
Line	Trends over time	Monthly profit for two years
Pie	Parts of one whole (one data series only)	Share of each expense in total cost
Doughnut	Parts of a whole for more than one series (rings)	Expense shares in two years
Area	Trend with the size of the total shown	Cumulative sales
XY (scatter)	Relationship between two variables	Advertising spend against sales
Bubble	Three variables (x, y and bubble size)	Product, price, volume
Radar	Comparing several series across many categories from a centre point	Highest and lowest sales of each product

NCERT notes that a pie chart in Excel should not plot more than seven categories, and that doughnut charts are not easy to read, so a stacked column or bar chart may be better.

Worked example

Suppose you have monthly profit for the last two years and want the reader to see whether profit is rising. Which chart type should you use and why? [1 mark]

Try it first, then show the solutionSolution

1. A trend over time is shown best by a line graph; two years can be two lines.

Answer: A line graph (multiple-line for two years).

Formatting and changing a chart

NCERT section 4.2.2, 4.2.3, 4.2.4

Clicking a chart shows the Chart Tools with three tabs:

• Design: change chart type, Switch Row/Column, choose a chart layout and chart style, select data, move the chart.
• Layout: add or remove titles, legend, data labels, axes and gridlines; format the plot area.
• Format: format a selected element (fill, outline, effects, text).

You can also change the chart type after creating it (for example column to pie), resize the chart by dragging its handles, and change the internal margin of text in an element (the distance between the text and the element's border, set on the left, right, top and bottom).

Worked example

Suppose a chart shows products on the horizontal axis but your teacher wants quarters on the horizontal axis. What is the quickest way? [1 mark]

Try it first, then show the solutionSolution

1. Design tab → Data group → Switch Row/Column.

Answer: Use Switch Row/Column.

Pie chart from accounting data

NCERT section 4.2 (pie chart steps)

Steps: enter the categories and values in two adjacent columns; select them; Insert → Pie → choose a sub-type (2-D, 3-D, exploded). Excel converts each value into its share of the total: slice angle = value ÷ total × 360°. Add data labels to show percentages. A pie chart has only one data series.

Worked example

Suppose quarterly sales are ₹25,000, ₹15,000, ₹20,000 and ₹40,000. Find each quarter's share and pie slice angle. [3 marks]

Try it first, then show the solutionSolution

1. Quarterly sales of Rangoli Paints (₹)

   Quarter	Sales (₹)	Share of total	Pie slice
   Quarter 1	25,000	25%	90°
   Quarter 2	15,000	15%	54°
   Quarter 3	20,000	20%	72°
   Quarter 4	40,000	40%	144°
   Total	1,00,000	100%	360°

Answer: Shares 25%, 15%, 20%, 40%; angles 90°, 54°, 72°, 144°.

Advantages of graphs and charts

NCERT section 4.3

• Help to explore: a chart quickly shows whether two variables are related, faster than paging through raw data.
• Help to present: information is grasped in very little time; newspapers and magazines use charts to sum up ideas.
• Help to convince: large amounts of information become exhibits that persuade.

In business, charts also make comparison easy, highlight trends and exceptions, and update automatically when the underlying data change.

Worked example

Suppose a sales manager must persuade the board that advertising raises sales. How can a chart help, and which type? [3 marks]

Try it first, then show the solutionSolution

1. A chart turns many figures into a picture that persuades (help to convince).
2. A scatter (XY) chart of advertising spend against sales shows the relationship (help to explore).

Answer: A scatter chart showing that higher advertising goes with higher sales.

Graphs and Charts for Business Data in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Topics in this chapter

• Types of Charts
• Steps to Create a Chart
• Chart Elements and Formatting

Graphs and Charts for Business Data: key facts

Pie slice angle

Value ÷ total × 360°

Share of total

Value ÷ total × 100%

Creating a chart

1. 1.Select data (with headings)
2. 2.Insert tab
3. 3.Charts group
4. 4.type and sub-type

Changing a chart

Chart Tools → Design (type, Switch Row/Column, layout, style), Layout (titles, legend, labels), Format (element formatting)

How the board asks Graphs and Charts for Business Data

The question patterns to expect, and the method that works for each.

Tricks to remember Graphs and Charts for Business Data

Short memory aids. Say each one aloud once, then use it on a question the same day.

• C-T-S-R

  Comparison → column/bar; Trend → line; Share → pie; Relationship → scatter.

  Use it when: Choosing a chart.

• Seven elements

  Chart area, Plot area, Data points/series, Axes, Legend, Titles, Data labels.

  Use it when: Elements of a chart.

• D-L-F

  Chart Tools tabs: Design, Layout, Format.

  Use it when: Formatting a chart.

• EPC

  Explore, Present, Convince.

  Use it when: Advantages.

Graphs and Charts for Business Data: board-level solved questions

Ordered from board level to HOTS. Cover the solution, write your own, then compare step by step.

Case-study practice (Section E style)

Read the situation, then answer every part. In the board paper this is a 4-mark question split into 1 + 1 + 2 marks.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Where students lose marks in Graphs and Charts for Business Data

The slips examiners see most often, and what to write instead.

• ✗Mistake: Using a pie chart for a trend over time

  Pie charts look attractive.

  ✓Do this: Trends need a line (or column) chart; pies show parts of one whole.

  Usually costs: 1 mark.

• ✗Mistake: Calling the legend a data label

  Both are text on the chart.

  ✓Do this: Legend identifies series; data labels show values of points.

  Usually costs: 1 mark.

• ✗Mistake: Saying radar or pie charts have X and Y axes

  Assuming all charts have axes.

  ✓Do this: Radar has no horizontal axis; pie and doughnut have no axes.

  Usually costs: 1 mark.

• ✗Mistake: Putting values on the X-axis and categories on the Y-axis in a column chart

  Mixing axes.

  ✓Do this: X (horizontal) = categories; Y (vertical) = values.

  Usually costs: ½-1 mark.

• ✗Mistake: Forgetting to select headings with the data

  Selecting numbers only.

  ✓Do this: Include headings so Excel labels axes and the legend.

  Usually costs: ½ mark in steps.

NCERT exercise guide: Graphs and Charts for Business Data

What each exercise in the NCERT chapter tests, how to approach it, and a question of the same kind solved step by step. Questions here are written in our own words.

Graphs and Charts for Business Data: previous year questions

• Asked in 2 of the 2 board papers we hold (2026 to 2026), on average 4.5 marks per paper; 2 questions in all, counting OR alternatives. In 3 of 4 sample papers.

Counted from the real papers on our previous year papers page, not estimated. Average marks are over every board paper we hold, with an OR pair counted once. Chapter tags are ours.

Solved board questions from Graphs and Charts for Business Data

Real questions from recent papers. Try each one first, then open our step-by-step solution with marks per step.

Every Graphs and Charts for Business Data question, by year

Practice questions on Graphs and Charts for Business Data

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

1. Q1 · 1 mark · MCQBoard level

   The area bounded by the X and Y axes in a 2-D chart is the:
   (a) chart area
   (b) plot area
   (c) legend
   (d) data label

   Hint

   Inside the axes.

   Answer

   (b) plot area

2. Q2 · 1 mark · MCQBoard level

   Related data points plotted in a chart in the same colour form a:
   (a) legend
   (b) data series
   (c) category
   (d) axis

   Hint

   Same colour, same group.

   Answer

   (b) data series

3. Q3 · 3 marks · Short answerBoard level

   State three advantages of using graphs and charts.

   Hint

   Explore, present, convince.

   Answer

   They help to explore relationships quickly; help to present information in little time; help to convince or persuade by turning large data into clear exhibits.

4. Q4 · 3 marks · Short answerBoard level

   What are radar charts? What purpose do they serve?

   Hint

   Many categories, several series.

   Answer

   Charts that plot several data series across many categories radiating from a central point, with no horizontal axis. They compare the aggregate values of several series, such as highest and lowest sales of each product.

5. Q5 · 4 marks · Short answerHarder board level

   Explain any four elements of a chart.

   Hint

   Area, plot, series, legend, axes, titles, labels.

   Answer

   Chart area (whole chart); plot area (inside the axes); data series (related points in one colour); legend (identifies each series) (also axes, titles, data labels).

6. Q6 · 3 marks · Short answerHarder board level

   Suppose expenses are: salaries ₹54,000, rent ₹18,000, power ₹9,000, others ₹9,000. Calculate the pie slice angles.

   Hint

   Total ₹90,000.

   Answer

   Salaries 216°, rent 72°, power 36°, others 36° (60%, 20%, 10%, 10%).

7. Q7 · 3 marks · Short answerHarder board level

   How is a doughnut chart different from a pie chart, and why does NCERT suggest a stacked bar or column chart instead?

   Hint

   Rings.

   Answer

   A doughnut shows parts of a whole like a pie but can hold more than one data series as rings. Doughnut charts are not easy to read, so a stacked column or bar chart often conveys the same comparison more clearly.

8. Q8 · 3 marks · Short answerHOTS / competency

   Suppose a manager has monthly profit and loss figures, with losses in some months. Which kind of chart and axis setting will show both clearly?

   Hint

   Negative values.

   Answer

   A column (or line) chart whose vertical axis runs below zero, so profits appear above and losses below the horizontal axis.

9. Q9 · 1 mark · Assertion-reasonHOTS / competency

   Assertion (A): Charts update automatically when the worksheet data change.
   Reason (R): A chart is linked to the cells from which it was created.
   (a) Both true and R explains A (b) Both true, R does not explain A (c) A true, R false (d) A false, R true

   Hint

   Linked source.

   Answer

   (a)

10. Q10 · 1 mark · MCQHarder board level

    Which axis is also called the depth or series axis?
    (a) X
    (b) Y
    (c) Z
    (d) none

    Hint

    3-D charts.

    Answer

    (c) Z

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1. 1.What is a data series?Show answer

   Related data points plotted in a chart, shown in the same colour or pattern.

2. 2.Which tab and group are used to insert a chart?Show answer

   Insert tab, Charts group.

3. 3.What does the Z-axis show in a 3-D chart?Show answer

   The depth (series) axis.

4. 4.How many data series can a pie chart show?Show answer

   One.

5. 5.Which chart shows the relationship between two variables?Show answer

   XY (scatter) chart.

6. 6.What is the chart area?Show answer

   The whole chart including all its elements.

7. 7.Which command swaps categories and series?Show answer

   Switch Row/Column (Design tab).

8. 8.Name three advantages of charts.Show answer

   Help to explore, present and convince.

Quick revision checklist

The night before the exam: can you do each of these without looking?

• ☐Can you define a graph and name its axes?
• ☐Can you list the steps to create a chart in Excel?
• ☐Can you name and explain the seven chart elements?
• ☐Can you choose the right chart for comparison, trend, share and relationship?
• ☐Can you explain radar and doughnut charts?
• ☐Can you calculate pie slice angles?
• ☐Can you use Switch Row/Column and Change Chart Type?
• ☐Can you describe the three axes of a 3-D chart?
• ☐Can you list three advantages of charts?
• ☐Can you spot and fix a misleading chart?

Graphs and Charts for Business Data: frequently asked questions