ICAEW BIP · Chapter 8 · Question 5 of 10
Actual sales in quarter 4 were 5,520 units. Under the multiplicative model, the seasonal index for quarter 4 is 1.2. What is the seasonally adjusted (deseasonalised) sales figure for quarter 4?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) 4,600 units
Explanation
Seasonally adjusted figure = actual / seasonal index = 5,520 / 1.2 = 4,600 units. Removing the seasonal effect shows the underlying level of sales, which can be compared directly with other quarters.
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