FP trends
Sammys1987
Registered Posts: 57 Epic contributor 🐘
Hi,
Just wondered if someone can help, can't work this out.
Sv = +10% +20% -15% -10%
Act cost= 13200 15000 11050 12150
Underlying
Trend. = ? ? ? ?
And is the below correct?
If underlying cost for previous month is £420?
Underlying cost = 440 460 480
Sv. = 30 (10) 30
Forecast sales. = 410? 470? 450?
I can't find it in my books much info on it but its on a practice paper I have.
Please could someone help?
Thanks in advance
Just wondered if someone can help, can't work this out.
Sv = +10% +20% -15% -10%
Act cost= 13200 15000 11050 12150
Underlying
Trend. = ? ? ? ?
And is the below correct?
If underlying cost for previous month is £420?
Underlying cost = 440 460 480
Sv. = 30 (10) 30
Forecast sales. = 410? 470? 450?
I can't find it in my books much info on it but its on a practice paper I have.
Please could someone help?
Thanks in advance
0
Comments
-
Hi Sammy,
With the first part of the question, I know that to get the underlying trend you take the actual cost and if the seasonal variation is a positive you deduct that figure from the actual cost and vice versa if its negative. However by doing this with the below figures I get :
Actual cost 13200 15000 11050 12150
SV +10% +20% -15% -10%
Trend 11880 12000 12708 13365
Which gives an inconsistent trend: 120,708,657.
Are the figures definately right?
Sorry if I have done this wrong but it doesnt seem to work.
Thanks0 -
Hi Amy,
That's exactly the figures I hav got!! Il have to look into it. I thought I was doing it wrong!!
Thanks0 -
Well I may be wrong too, but thats the answer I got. Maybe the figures in the question are wrong?
Feel free to send me the question if you can via pm and I can take a look at it.
Thanks0 -
OK, your actual values are 13200, 15000, 11050 and 12150, and you know that these are 110%, 120%, 85% and 90% of the underlying (non seasonal variated- is that a word?) figures.
So if 13200 is 110%, 100% must be 12000
15000 is 120% so 100% is 12500
If you do the final 2 values you will see that each time, the underlying value goes up by 500, so there is your trend.0 -
I don't really know what you mean with the 2nd bit, but from what I can tell from what you've written, your underlying trend is going up by 20 each month and for the 3 months in question (440, 460 and 480), you need to add +30, -10 and +30 to them to get the actual figures, so 470, 450 and 510.0
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Thanks nps that is helpful. I did originally put the last figures on my practice assessment and then I thought that was wrong :-/.0
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Thats good to know Nicola thanks, I always thought in these types of questions the trend should be consistent month after month.
Glad you have got your answer Sammy!0 -
Actual SV Trend
Month 1 13200 10% 12000
Month 2 15000 20% 12500
Month 3 11050 -15% 13000
Month 4 12150 -10% 135000 -
Thank you!!
Does anyone know how to do the other question? I can't remember if u do the opposite ie if its positive you subtract it, if its negative you add it??
Thanks0 -
It should be covered in my 2nd post, if I've understood the question right.0
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As NPS said:
Underlying cost = trend I believe so:
Underlying cost = 440 460 480
Sv. = 30 (10) 30
Actual should be: 470 450 5100
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