Index numbers / practise for PRAR

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi

Can somebody help me pls, I am stuck on practise question?

annual Turnover

YEAR m
X0 11.90
X1 12.75
X2 13.50
X3 14.20
X4 16.19

Index relevant to chemical sector of industry x99=100

YEAR
X0 104.1
X1 105.7
X2 107.9
X3 109.9
X4 111.8

Task: info showing actual turnover over 5 years, together with an industrial sector index

CALCULATE THE INDEXED VALUE OF ANNUAL TURNOVER IN YEAR X00 TERMS ?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    To work out the indexed value of a figure:

    Indexed value = original value X base index value/index value for year in question

    So, for year X1 the indexed turnover in year X0 terms is:

    (12.75x104.1)/105.7 = 12.56

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    ..this might be a silly question, but the index adjusted turnover for year x0 ? will that be 11.90 and then for x1 it would be as per your working out 12.56 ?
    Is this correct?

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    thank you for your help, I worked out the rest of them and they came out the same as the answers I was given Your help is much appreciated!

    Thanks again! I can move on and attempt the rest of the tasks now :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    Happy to be of help. Took me a little while to get my head round indices but they're quite straightforward once you get the hang of them.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    PRAR ? Is that in Intermediate ? If so what unit is it ?


    (Having a panic attack here think I have missed a unit ? :shock: )
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    Reports and Returns - Unit 7
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    Thanks :)


    Feel like a right numpty now :oops: :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Index numbers / practise for PRAR

    ..unit 7 and I find it the hardest from the all! But as CJC said, once you get your head around it, - its straight forward, just pure maths :)

Categories

Privacy Policy