AVTO, Dec 03Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › AVTO, Dec 03This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts January 31, 2018 at 2:56 am #434096 mansoorParticipantTopics: 424Replies: 542☆☆☆☆Good Morning!We are not inflating the given labor/component/sales costs by the inflation of 20% in year 1.Is it because the costs given ARE for year 1? where as normally we are given the costs at year 0 which requires the figures to be inflated?regards January 31, 2018 at 10:46 am #434163 John MoffatKeymasterTopics: 57Replies: 54737☆☆☆☆☆Yes – the costs are given for year 1 and so it is only later years that inflate.This is very common in the exam. We only inflate in the first year if the costs are given at current prices.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In