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Yilandwe Co. Q1 (6/15) inflating differences

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Yilandwe Co. Q1 (6/15) inflating differences

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 20, 2017 at 10:01 am #373303
    Abdul Rafay
    Member
    • Topics: 29
    • Replies: 44
    • ☆☆

    Sir while attempting this question I inflated the normal way:
    Original Sales price x Sales Volume x Exchange rate x Inflation rate

    In the examiners answers however, the variables (costs and sales price) have been inflated and rounded off before being used to calculate the totals.

    My NPV ended up being 0.6 million more than the MS.
    I triple checked all my calculations to make sure the difference was only because of this inflating issue.
    Was my approach ok, or was I supposed to do it the other way?
    A sales price of 772 Euros does sound more practical than 771.75 (700 x 1.03^2)… 🙂

    February 20, 2017 at 3:39 pm #373370
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    You will not lose marks for rounding – what you have done is fine 🙂

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  • The topic ‘Yilandwe Co. Q1 (6/15) inflating differences’ is closed to new replies.

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