Accounting

The design of the spreadsheet is important since it presents the information needed by the users. In accounting, spreadsheets are used to keep records needed by the bookkeeper or accountant for data presentation. The importance of spreadsheet can be seen in the increasing number of individuals making use of it for an ease in tracking records.

The spreadsheet is designed in such a way that the users of it, including the beginners, could easily understand what the data presents. Few colors are used so as not to confuse the users. Formulas are embedded in order for the totals to automatically adjust whenever modification is necessary. In table1, the total of the direct cost for building the Econo-Bike will automatically adjust whenever changes in the direct costs are made. Moreover, if changes in the variables are made, the graph will automatically be adjusted to provide the exact conversion of each variable. However, users should retain the formula embedded in the spreadsheet. The formula is the device that made possible the automatic adjustments in the totals. The same procedures are made in all of the tables in the spreadsheet. In table 1 and 2, the number of hours and the rate per hour can be adjusted thus, would also change the amount for each direct labor, further, would also adjust the total cost. In tables 3 and 4, when modifications are made in the number of units produced per year the total direct cost for building each of the product will adjust automatically. In accounting, the quantity of the product is always changing since the quantity depends on the number of products produced, purchased, sold and other related activities performed by the enterprise.

The use of a pie chart is the most appropriate of all the graphs for this case since it provides an ease in knowing which of the factors has the largest fraction in the total cost. Also, the pie as a whole represents the total cost and the cuts made in the pie represents the fraction eaten by the contributors in the total cost such as carbon fibre frames, fork, wheels, components, saddle and handlebars, direct labor (workshop) and direct labor (finishing). The charts are correctly labeled in order for it not to be misleading. The portion of the pie that has the biggest cut is said to be the contributor that contributes the most in the total cost. In the case of table 1 it can be seen that carbon fibre frames has the largest portion in the total cost since it occupies almost one-third of the whole pie. For table 2, wages in quality control department contributes the biggest since it is the portion of the pie that is said to be the biggest.