- This topic has 3 replies, 2 voices, and was last updated 7 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
dear john
in a specimen question paper, september 2016 question 31.(a) (iii)
for the calculation of ROCE
the total accounting profit have been divided by 4 when finding average,i thought we should do the same on average investment(divide by 4)
however the investment have been divided by 2? can you clarify why
best regards
If you have $100 in your pocket today, and you spend during the day so you are left with $10 at the end of the day, then the average amount (the amount you had in the middle of the day is (100 + 10) / 2 = 55.
I hope this makes sense, but if not then watch the Paper F2 lectures on investment appraisal because I do spend time there explaining the logic.
i do not follow any how
In that case you really need to watch the Paper F2 lectures that I referred to in my previous reply.