Question

Describe about data labels.

Answer 1

Data labels are text descriptors or numerical values placed directly on or next to individual data markers (such as bars, columns, lines, or pie slices) inside a chart. Their primary purpose is to provide precise details about specific data points, making the graph much easier to read without forcing the user to constantly look back at the axes or the original worksheet table. Data labels can display the exact numeric values, percentages, or category names of the plotted data, which is especially useful in charts like pie charts where seeing the exact proportion or share of a slice is critical for accurate analysis. By overlaying the actual numbers directly onto the visual shapes, data labels remove any ambiguity and allow business managers to extract exact accounting figures from a chart at a single glance.