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Question

Direction : Consider the following for the two (02) items that follow :

The budget allocations represented in a pie diagram under five different heads A, B, C, D and E are respectively 40%, 18%, 9%, 25% and 8%. The total budget allocation is ₹300.4 lakhs.

How much less amount is allocated to A and C together as compared to B, D and E together?

This question was previously asked in
CDS I 2022 English Previous Year Paper (10-April-2022)
The correct answer is

₹6.008 lakhs

Understanding Budget Allocation from a Pie Chart

The problem provides budget allocations across five different heads, A, B, C, D, and E, represented as percentages in a pie chart. The total budget allocation is given as ₹300.4 lakhs. We need to find the difference in the amount allocated to heads A and C combined, compared to the amount allocated to heads B, D, and E combined.

The given percentages for each head are:

  • Head A: 40%
  • Head B: 18%
  • Head C: 9%
  • Head D: 25%
  • Head E: 8%

Let's first verify if the total percentage is 100%:

\(\text{Total Percentage} = 40\% + 18\% + 9\% + 25\% + 8\% = 100\%\)

This confirms the percentages represent the complete budget.

Calculating Combined Allocations

We need to find the total percentage allocated to (A + C) and the total percentage allocated to (B + D + E).

Percentage for (A + C) = Percentage of A + Percentage of C

Percentage for (A + C) = \(40\% + 9\% = 49\%\)

Percentage for (B + D + E) = Percentage of B + Percentage of D + Percentage of E

Percentage for (B + D + E) = \(18\% + 25\% + 8\% = 51\%\)

Note that \(49\% + 51\% = 100\%\), which accounts for the entire budget.

Converting Percentages to Amounts

The total budget allocation is ₹300.4 lakhs. To find the amount allocated to each group, we convert the percentages to fractions of the total budget.

Amount allocated to (A + C) = \(49\%\) of ₹300.4 lakhs

Amount allocated to (A + C) = \(\frac{49}{100} \times 300.4\) lakhs

Amount allocated to (A + C) = \(0.49 \times 300.4\) lakhs

Amount allocated to (A + C) = ₹147.196 lakhs

Amount allocated to (B + D + E) = \(51\%\) of ₹300.4 lakhs

Amount allocated to (B + D + E) = \(\frac{51}{100} \times 300.4\) lakhs

Amount allocated to (B + D + E) = \(0.51 \times 300.4\) lakhs

Amount allocated to (B + D + E) = ₹153.204 lakhs

Finding the Difference in Allocation

The question asks how much less amount is allocated to A and C together as compared to B, D and E together. This means we need to find the difference: (Amount B + D + E) - (Amount A + C).

Difference = Amount allocated to (B + D + E) - Amount allocated to (A + C)

Difference = ₹153.204 lakhs - ₹147.196 lakhs

Difference = ₹6.008 lakhs

Alternatively, we could calculate the difference in percentages first and then find that percentage of the total budget.

Difference in percentage = Percentage for (B + D + E) - Percentage for (A + C)

Difference in percentage = \(51\% - 49\% = 2\%\)

Difference in amount = \(2\%\) of ₹300.4 lakhs

Difference in amount = \(\frac{2}{100} \times 300.4\) lakhs

Difference in amount = \(0.02 \times 300.4\) lakhs

Difference in amount = ₹6.008 lakhs

Both methods yield the same result.

Summary of Calculations

Group Heads Included Combined Percentage Amount (₹ lakhs)
Group 1 A, C 49% 147.196
Group 2 B, D, E 51% 153.204
Difference Group 2 - Group 1 51% - 49% = 2% 153.204 - 147.196 = 6.008

The amount allocated to A and C together is ₹6.008 lakhs less than the amount allocated to B, D, and E together.

Revision Table: Key Budget Allocation Concepts

Concept Description Calculation Example (using total budget ₹300.4 lakhs)
Percentage Allocation The proportion of the total budget assigned to a specific head or group, expressed as a percentage. Head A: 40%
Total Budget The total amount of money available for allocation across all heads. ₹300.4 lakhs
Amount Calculation Converting a percentage allocation into a specific monetary value. Amount for A = \(\frac{\text{Percentage of A}}{100} \times \text{Total Budget}\)
Difference Calculation Finding the numerical difference between two allocated amounts. Difference = Amount of Group 2 - Amount of Group 1

Additional Information on Pie Charts and Budgeting

Pie charts are commonly used graphical tools to represent parts of a whole. In budget allocation, a pie chart visually shows how the total budget is divided among different categories or heads. Each slice of the pie represents a budget head, and the size of the slice is proportional to the percentage of the total budget it receives.

  • The sum of percentages of all slices in a pie chart is always 100%.
  • To find the actual value of a slice (amount allocated to a head), you multiply the total budget by the percentage allocation (converted to a decimal or fraction).
  • Budget allocation is the process of assigning available funds to different purposes, allowing organizations or individuals to plan and control spending.
  • Understanding budget allocations is crucial for financial analysis and planning.
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