Chart Showing Comparison of Sales, Purchases,
and Sales Salaries

Chart Showing Comparison of Sales
with Cost of Sales

Principles of Graph Construction

The following principles should be observed in making graphs:

1. Graphs should be simple so that the full significance is readily seen. If a chart requires a great deal of study its very purpose is defeated. As a general rule, only two lines should be used. This is especially true if the lines are apt to intersect one or more times. If there are a number of interrelated figures to be presented, it is better to make separate charts on one sheet or to place them together in some other way.

2. Most statistics can be presented by one or more curves where the quantity is expressed by the distance of the curve from the base line, and the time is represented by the horizontal movement of the curve.

3. For a curve the vertical scale should be so selected that the zero line will appear on the diagram. This may require a break in the graph, as shown on page 585.

4. When the scale represents percentages the 100% line should be emphasized in some distinctive way.