Differences between calculations.

TomGoughUK

I had an example question regarding labour hours which had 5% unproductive hours. So the total hours would need to include an additional 5%.
Can someone explain the difference between doing:
5700 * 1.05 (which equals 5985)
and
5700 * 100 / 95 (which equals 6000).
The second way is the correct way but I can't understand why there is a difference.

anony123

Pass.

anony123

I think the 5% would need to be taken off.
Are you sure the second one isn’t 5700/100 then times by 95.

TomGoughUK

I have added a screenshot from the AAT results.

TomGoughUK

So I think my confusion was because I was working out 5% of a figure (for 5% wastage) but I should've been working out 5% of the total figure, including the wastage. The questions have changed on the green light test but I have re-done this section this morning using this way of calculating it (i.e. figure / 100 * 95) and have got 100% correct.

anony123

If you are doing the area which I think u are, there were no questions on wastafe. Management techniques? If not, pardon me.