PEV 2009 Task 1.3

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Julietta100
Julietta100 Registered Posts: 13 New contributor 🐸
Hello =) I'm completely lost with this one... Looked at the answers and I'm ever more confused... F.ex. in a)The cost per 1,000kg of beans was 1,200 in sept. Seasonal variation was (200) so they are saying that trend would be 1,400... So the negative seasonal variation has been added to the cost?? Why then in b) the negtive seasonal var. has been deducted... Any help would be greatly aprreciated...

P.s. Ahhh that's the PEV December 2009

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  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
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    In a you are working out the underlying trend, while in b you work from the underlying trend to the actual figures.

    Underlying trend plus seasonal variations is actual costs
    Actual costs less seasonal variations is underlying trend
  • Julietta100
    Julietta100 Registered Posts: 13 New contributor 🐸
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    Thank you for the reply=) I'm probably being really thick right now but just to make sure...
    If calculating underlying trend you add the negative variations and deduct the positives and if calculating the actual figures the other way round?? And yes I do realise how high the level of my ignorance has risen by asking this :P
  • anniem
    anniem Registered Posts: 1,326 Beyond epic contributor 🧙‍♂️
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    Seasonal Variations; I suppose it's sort of a bit like selling patio furniture.

    During the spring demand would be growing, so there would be a + effect on sales

    In the summer demand is high, so there would be a +++ effect on sales.

    In the autumn, demand would be waning, so there would be a - (minus) demand for patio furniture.

    During the winter, there would demand would be ---(minus) demand for garden furniture.


    Patio furniture would be available all year around, it's just that there isn't necessarily always the demand, so this is reflected through the use of seasonal variations.


    The demand for Christmas trees would have a completely different seasonal variation, with demand being extremely high from 1 - 24 December, then disappearing completely for the other 48.5 weeks of the year!!!!
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • anniem
    anniem Registered Posts: 1,326 Beyond epic contributor 🧙‍♂️
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    Thank you for the reply=) I'm probably being really thick right now but just to make sure...
    If calculating underlying trend you add the negative variations and deduct the positives and if calculating the actual figures the other way round?? And yes I do realise how high the level of my ignorance has risen by asking this

    Yes, that's exactly what you do. Don't think you're being ignorant asking something on here, we all ask things that other people know the answers to, that's why this forum works :)
    FMAAT - AAT Licensed Member in Practice - Pewsey, Wiltshire
  • Julietta100
    Julietta100 Registered Posts: 13 New contributor 🐸
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    Ah thank you muchlyyyyyyyyyyyy both of you!! I hope I'll still remember it tomorrow =P
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