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ACCA Applied Knowledge · Management Accounting · Presenting information

Quarterly sales for a year were: Q1 40,000; Q2 50,000; Q3 30,000; Q4 60,000. A Z chart is being drawn showing the cumulative total and the moving annual total. The previous year's quarterly sales were Q1 35,000; Q2 45,000; Q3 40,000; Q4 50,000. What is the moving annual total at the end of Q3 of the current year?

The moving annual total at the end of Q3 is 170,000. It covers the latest four quarters: last year's Q4 of 50,000 plus this year's Q1 to Q3 of 120,000. The figure of 120,000 is only the cumulative total for the current year.

  1. A120,000
  2. B160,000
  3. C170,000Correct
  4. D180,000

Explanation

The moving annual total at the end of Q3 is the sales for the latest four quarters: previous Q4 (50,000) plus current Q1 to Q3 (40,000 + 50,000 + 30,000 = 120,000). 50,000 + 120,000 = 170,000. Using only the current year's cumulative total gives 120,000, which is the cumulative total and not the moving annual total.

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