ACCA Applied Knowledge · Management Accounting · Spreadsheets
A cost spreadsheet shows unit costs in B2:B5 of 12, 15, 9 and 14. Cell C1 contains the formula =IF(AVERAGE(B2:B5)>12,"Review","OK"). What does C1 display if the value in B4 is changed from 9 to 13?
C1 displays Review. After B4 changes to 13, the four unit costs total 54 and average 13.5. This exceeds the test value of 12, so the IF condition is true and returns the text Review rather than OK.
- AOK
- BReviewCorrect
- C12.5
- DAn error message
Explanation
Originally the average is (12+15+9+14)/4 = 12.5, which is already above 12. After changing 9 to 13, the total is 54 and the average is 13.5. Since 13.5 is greater than 12, the IF test is true and the cell shows Review. OK would arise only if the average were 12 or below.
Did you get it right without looking?
One question tells you little. A timed set on Spreadsheets shows your real accuracy, how long you take and where you lose marks.
More Spreadsheets questions
- In a spreadsheet, the finance team of Harbor plc has a table of cost data with 20 rows. They want to display only the rows where the cost ce…
- A budget model has quarterly sales in B2:E2 (Q1 to Q4: 200, 240, 260, 300 units) and a unit price in cell G1 ($50). In B3 a formula =B2*G1 i…
- Which of the following is the main advantage of using a spreadsheet model for a cash budget rather than preparing it manually?
- In a budget spreadsheet, cell B1 holds an overhead absorption rate of 4.50. Cell A5 holds labour hours of 2,000. The formula in C5 is to be …
- A spreadsheet computes contribution as =B3*(C3-D3), where B3 is units sold, C3 is selling price and D3 is variable cost per unit. Test data …
- In a spreadsheet, cell B2 contains the formula =A2*$D$1. This formula is copied down into cell B3. Which formula will appear in B3?