ACCA Applied Knowledge · Management Accounting · Spreadsheets
A budget model has quarterly sales in B2:E2 (Q1 to Q4: 200, 240, 260, 300 units) and a unit price in cell G1 ($50). In B3 a formula =B2*G1 is entered and then copied across to E3. What value will appear in E3?
E3 shows $0. Because G1 was entered as a relative reference, copying the formula three columns right shifts it to J1, which is empty and counts as zero, so 300 units multiplied by zero gives nothing. An absolute reference $G$1 would have given $15,000.
- A$15,000
- B$12,000
- C$0Correct
- D$13,000
Explanation
Copied across, B2 becomes E2 but G1 (relative) becomes J1, which is blank and equals zero. So E3 = 300 x 0 = $0. Had G1 been written $G$1, the result would have been 300 x 50 = $15,000, which is the tempting wrong option. The other values do not match any quarter.
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