# 4 those Financial Performance experts

Registered Posts: 82 💫 🐯 💫
AAT's practice exam question:

2. A company has provided the following information:

January February March
Total cos £100000 £120000 £125000
Total quantity purchased 10000 kg 11000 kg 10700 kg

The cost index for March based upon January being the base period of 100 is:

A 107
B 117
C 125
D 108
Now my answer is C- 125, but the AAT's answer booklet seems to think its B-117, am i missing something..

i got my answer using this calculation: 125000/100000*100= 125

Thanks

Stu

• Registered Posts: 2,453
Hiya,

You need to do two calculations here, you did one of them, but also have a look at the quantities and recalculate those to the same amounts as well.

Cheers,
Rinske
• Registered Posts: 144 🎆 🐘 🎆
Re: FP

January 100,000/10,000 = 10

February 120000/11000 = 10.90909

March 125000/10700 = 11.68

therefore, 11.68/10*100 = 116.8 or round up 117

hope this helps
• Registered Posts: 81 💫 🐯 💫
can you help me on cba3 section 1.5
• Registered Posts: 782
When you ask for help, could you be more specific about what you do understand and what you don't. There are lots of people ready and willing to help but it would help them if they knew which bits in particular you need help with. In this particular question, working backwards from the answer will demonstrate how to do it.

(Oh, and a 'please' or 'thank you' in requests also encourages people to help).