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Time series

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Time series

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.
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  • April 18, 2023 at 1:00 pm #683131
    .Ali
    Participant
    • Topics: 4
    • Replies: 4
    • ☆

    Ammanda Ltd. has forecasted sales of $500,000 for Quarter 3 of year 20X5.

    It has increasing trend of $5,000 per quarter. Sales in 2nd quarter of year 20X2 were $400,000. Calculate seasonal variation for quarter 3 assuming that Ammanda Ltd. uses additive model of seasonal variation.

    The answer is 35000

    (Seasonal variation is difference between actual sale and trend or forecast sale)

    There is 13 quarter from (2nd quarter of 20X2 to 3rdquarterof 20X5)

    13*5000=65000
    65000+400,000=465000
    500000-465000=35000

    Is it right?

    April 18, 2023 at 5:08 pm #683149
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    Yes – that seems to be correct 🙂

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