CIMA BA1 · Chapter 11 · Question 10 of 11
Actual sales in Quarter 3 were 2,310 units. Using a multiplicative model, the seasonal index for Quarter 3 is 1.10. What are the seasonally adjusted (deseasonalised) sales for the quarter?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 2,100 units
Explanation
Seasonally adjusted figure = actual / seasonal index = 2,310 / 1.10 = 2,100 units. Removing the seasonal effect shows the underlying level of sales; multiplying by the index would add the seasonal effect again.
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