RPI formula

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Turbo_Dave
Turbo_Dave Registered Posts: 23
in AAT Level 4 (Level 8 in Scotland)
Good afternoon,

I have my Financial Performance exam tomorrow afternoon which I am dreading.
I am confused as to which is the correct formula for adjusting sales using the RPI.
In my BPP textbook the formulae is Sales for current year x RPI for year 1/RPI for the current year.
However on my BPP passcards the formula is Actual sales in year Y x Current RPI/RPI for year 1.

Please could someone advise what the correct formula is?

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  • Zoynal98
    Zoynal98 Registered Posts: 65
    edited April 2017
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    Assuming the question is asking for Sales at Year 1 prices then:

    Sales for current year x RPI for year 1/RPI for the current year

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