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Rounding off percentages in Section B

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Rounding off percentages in Section B

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • December 5, 2020 at 10:00 am #597732
    Avatarapplessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    Sir in Section B there was this question where it asked to find the Return on Sales

    What I’m about to type is the relevant information to finding the return on sales

    The information is as followed before

    Operating profit: $600,000
    Sales Revenue : $3,600,000

    Sir when I was calculating return on sales
    I did this method. =(600000/3600000)*100

    I got the answer as a recurring figure
    Since we usually correct to 2d.p I used the figure the 16.68%

    However this is wrong and the correct answer is 17%

    Sir please explain me to what decimal I should correct to because i remember that I have asked a previous question in regard with correcting trade recievables days(my answer was a decimal answer and you said not to correct it unless the question specifies to round it to a certain decimal place)

    In this question for return on sales i couldn’t write the whole answer because it was a recurring figure

    Sir please help me figure out how to deal with this type of question

    December 5, 2020 at 7:14 pm #597785
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    Unless the question specifics how much rounding is required, then the software will be programmed to accept a range of answer – so do not worry 🙂

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