Unit 31 Practice Simulation - HELP ASAP!!!

System
System Posts: 100,537 🤖 Admin 🤖
edited 10:24AM in Student community
Hello,

I am currently studying with FTC, I have just started my practice simulation. To consolidate an operating statement for a company with two divisions, do i simply add them both together???

e.g Turnover
Division 1 Division 2 Total????
£4.00m £2.00m £6.00m???

Confused as this seems too simple!!! please help!

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  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Unit 31 Practice Simulation - HELP ASAP!!!

    hi there r u on about analysis of result by organisational unit?

    here a table hope this may help u.

    let say division 1 transferred goods to division 2 at a transfer price of £1.00m.
    Division 1 Division 2
    sales £4.00m £2.00m
    cost of sales £3.00m £2.00m
    therefore...

    Division 1 Division 2 Adjustment Total
    sales £4.00m + £2.00m (-£1.00m) £5.00m
    cost £3.00m + £2.00m (-£1.00m) £4.00m
    of sales

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