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“Most candidates correctly applied specific inflation to operating cash flows (sales income, variable cost and fixed cost). The question stated that buying the new machine would increase production capacity by 9,000 units per year; however some candidates took this to mean 9,000 units in year 1, 18,000 units in year 2 and so on. They were not penalised for this error”
when examiner said they were not penalised for this error, does that mean marks were still awarded in as much as the steps were correct.thanks
Yes – precisely!
(The examiner realised in the marking process that his words could be interpreted in two different ways, and so they gave full marks for either way.)
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