I don't understand meaning of absolute numbers in this sentence.
"A percentage expresses one number as a proportion of another and gives meaning to absolute numbers."
Ask the Tutor ACCA MA
Performance Measurement
9y ago#1You have not watched my lectures, because I explain this in the lectures!
If the profit this year is 200 and last year was 100, then it is no good simply saying therefore this year is better.
If sales this year are 5,000 and last year were 1,000, then you would have expected the profit to be 5 times as big as well, and it isn't.
Looking at the % is more meaningful. Last year profit was 100/1000 = 10% of sales. This year it is only 200/5000 = 4% of sales.
I want to know the definition of absolute numbers, Sir.
9y ago#3I have explained in my previous reply and in my lectures.
If you are still unclear then you should ask whoever wrote the statement that you quoted!!
Sign into reply to this topic.