Skip to content

ACCA Applied Knowledge · Management Accounting · Summarising and analysing data

Weekly sales of Product A have a mean of 400 units and a standard deviation of 60 units. Weekly sales of Product B have a mean of 250 units and a standard deviation of 50 units. What is the coefficient of variation for Product B?

The coefficient of variation for Product B is 20%. It is calculated as the standard deviation of 50 divided by the mean of 250. This relative measure shows Product B's sales are more variable in proportion to their average than Product A's, at 15%.

  1. A20%Correct
  2. B12.5%
  3. C500%
  4. D15%

Explanation

The coefficient of variation is standard deviation divided by mean: 50/250 = 20%. Using Product A's mean gives 12.5% (50/400). Product A's own coefficient is 60/400 = 15%. Inverting the ratio gives 500%.

Did you get it right without looking?

One question tells you little. A timed set on Summarising and analysing data shows your real accuracy, how long you take and where you lose marks.

Practise Summarising and analysing dataFree diagnostic mock

More Summarising and analysing data questions