Costs and Revenues: APPORTIONMENT METHOD

Daniel E

Hi there,

I'm currently working through the Pratice Assesments for Costs and Revenues and am facing a problem. The method for working out apportionment isn't consistant in the text book.

For example sometimes if the apportioned figure for a support cost centre is e.g. 3756.5 the answers will show it as 3756 but then the apportioned figure for the next support cost centre might come to 2362.5 and the answers will show it as 2363. How am I actually supposed to be coming to the correct figures?

Thanks

MarkT

Hi Daniel,

This is one of those grey areas in AAT and one must remain consistent when answering these questions where you are rounding up or down. In the case of .50, rounding up is normally the correct answer, but it can be safe to assume that in such cases, both are correct. Obviously, .49 rounding up would be incorrect and the same applies to .51 rounding down.

coojee

The problem is compounded also because the apportioned items must total the total so if both of them come to something .50 and you round them both up, your total will be 1 over so you have to round one up and one down. eg 99 apportioned 50/50 is 49.5 and 49.5 but if you round both of them to 50 you end up with a total of 100 so one needs to be 49 and the other needs to be 50. It doesn't matter which you'll still get the marks.