4 those Financial Performance experts
stuartander
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 B117, 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 B117, 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
0
Comments

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,
Rinske0 
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 helps0 
can you help me on cba3 section 1.50

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).0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 234 NEW! Qualifications 2022
 133 General Qualifications 2022 discussion
 7 AAT Level 2 Certificate in Accounting
 31 AAT Level 3 Diploma in Accounting
 55 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 91 Software
 272 Tax
 135 Bookkeeping
 7.3K General accounting discussion
 201 AAT member discussion (AATQB, MAAT, FMAAT and AAT Licensed Accountants and Bookkeepers)
 3.8K For everyone
 39 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 586 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 47 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership