CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 62 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 62
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

If fixed costs are increased, the gradient of the line plotted on a profit/volume (PV) graph will be:

ASteeper

BNot as steep

CUnchanged

DCurvi-linear

Show Suggested Answer

Suggested Answer: C

by Shalon at Dec 21, 2023, 09:30 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Vincent

2 days ago

I think the answer is C) Unchanged because fixed costs do not affect the gradient of the line on a PV graph.

upvoted 0 times

...

Noble

4 days ago

I'm not sure about this one. I was leaning towards C, but now I'm second-guessing myself. Guess I need to review my cost accounting notes.

upvoted 0 times

...

Candra

4 days ago

I disagree, I believe the answer is B) Not as steep.

upvoted 0 times

...

Bernardine

5 days ago

I think the answer is A) Steeper.

upvoted 0 times

...

Brynn

7 days ago

I think the answer is A. If fixed costs increase, the profit line on the PV graph will be steeper, as it will require more sales to break even.

upvoted 0 times

...

Blondell

9 days ago

A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.

upvoted 0 times

...

Larue

14 days ago

C) Unchanged

upvoted 0 times

...

Margot

16 days ago

A) Steeper

upvoted 0 times

...