# 4 those Financial Performance experts

stuartander
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**82**Registered
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

Please help coz this is really confusing me..

Thanks

Stu

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

Please help coz this is really confusing me..

Thanks

Stu

## Comments

2,453RegisteredYou 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

144RegisteredJanuary 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

81Registered782Registered(Oh, and a 'please' or 'thank you' in requests also encourages people to help).