DFS Section 2

joyride Registered Posts: 62 Regular contributor ⭐
I got confused on the Inventories turnover ratio, I initially had it as inventories/sales x 365 then panicked and changed it to sales/inventories x 365. It gave me a ridiculous figure like over 600, it looked wrong but I just left it as that.

Then for 2.2 I forget to answer 2.2 b, does this mean I have failed section 2? :crying:


  • earthzebra3
    earthzebra3 Registered Posts: 1 New contributor 🐸
    Inventories turnover is inventories divided by cost of sales x 365.

    I waffled my answer for 2.2 so probably cocked that one up. I don't think it will be an automatic failure for not answering a question so long as you get enough marks in section 2 to pass. Good luck:001_smile:
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    thanks, and good luck!
  • joyride
    joyride Registered Posts: 62 Regular contributor ⭐
    What figure did you get for Inventories and trade receivables?
  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
    Does anyone else think that to get competence on section 2 was more difficult than on section 1? When you look at the amount of work that section 1 took and in theory you only need 65% (ish) to gain competence (which is quite easy) then when you compare it to section 2 and only having two questions seems to make it far more difficult to achieve this sort of level.

    Also, just a pint, but I thought NVQ courses were supposed to be assessed continuously and not purely on an examination? Maybe I'm wrong - perhaps one of the board mods could pass this question on to whoever could answer. I also think that a marking scheme should be released so we can see where marks are gained and where they are not.
  • jolarrett
    jolarrett Registered Posts: 2 New contributor 🐸
    I was just doing Practice Exam paper 4 from the BPP book (TRUSTDAN PLC Set by the AAT in 2006) and the answer says that Inventories Turnover in days (based on cost of sales) is INVENTORIES/COST OF SALES X 100. Shouln't it be mulitplied by 365 (days)? Now i'm confused :-S
  • peugeot
    peugeot Registered Posts: 624 Epic contributor 🐘
    Hi Jolarett,

    The calculation for inventories turnover is:

    Inventory / cost of sales x 365.

    June 2006 DFS paper is here:


    Section 2 has the answer so BPP text book may have an error.

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