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CIMAPRA17-BA2-1 Exam - 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:

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Suggested Answer: C

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

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Carey
3 months ago
Totally agree, it’s all about variable costs for the slope!
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Muriel
3 months ago
Really? I thought it would change somehow.
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Rene
3 months ago
Definitely unchanged! Fixed costs don’t affect the slope.
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Ashley
4 months ago
I think it gets steeper with higher fixed costs.
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Jesusita
4 months ago
The gradient stays the same, right?
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Kattie
4 months ago
I recall that fixed costs don't change the slope, so I believe the answer is C, unchanged.
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Hui
4 months ago
I'm not entirely sure, but I feel like increasing fixed costs could make the line less steep, right?
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Madonna
4 months ago
I remember practicing a similar question, and I think the gradient is related to variable costs, so it should be unchanged.
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Vincenza
5 months ago
I think the gradient might stay the same because fixed costs don't affect the variable cost per unit.
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Adria
5 months ago
I'm not sure about this one. The question is asking about the gradient, but I'm not sure how fixed costs would impact that. I'll have to review my notes on PV graphs.
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Margart
5 months ago
The gradient represents the relationship between profit and volume, so if fixed costs go up, the line should become steeper. I'm confident that A is the right answer.
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Latrice
5 months ago
I'm a bit confused on this one. Does the gradient change or does the line just shift up or down? I'll have to think this through.
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Miesha
5 months ago
Hmm, this seems straightforward. I think the gradient of the line would be steeper if fixed costs increase.
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Margarita
5 months ago
Okay, I remember learning that fixed costs affect the y-intercept, not the gradient. So the line should become less steep if fixed costs increase.
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Ettie
5 months ago
I've got this! The customer service manager and major issue manager are definitely the ones who can propose a major case. The proxy contact and customer case manager don't seem like they'd have that authority.
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Elfrieda
5 months ago
Ugh, I'm not sure which option is the best approach. I'll need to review the question carefully and think through the different strategies before deciding.
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Ciara
10 months ago
Ha! This question is a real fixed cost. I bet the person who wrote it has a twisted sense of humor. Anyway, I'm going with A. Gotta keep that profit line as steep as possible, you know?
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Brandon
8 months ago
I'll go with D. Curvi-linear could be an interesting twist.
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Hermila
8 months ago
I'm not sure, but I think C. Unchanged sounds safe.
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Oliva
9 months ago
I'm going with B. Not as steep seems more logical to me.
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Gayla
10 months ago
I think A too. Steeper is the way to go.
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Ona
10 months ago
D? Really? I mean, sure, if fixed costs go up, the line might get a bit curvier, but 'curvi-linear'? That sounds like something out of a sci-fi movie, not an accounting exam.
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Vincent
10 months ago
I think the answer is C) Unchanged because fixed costs do not affect the gradient of the line on a PV graph.
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Noble
10 months 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.
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Glory
9 months ago
B) Not as steep
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Brianne
9 months ago
Don't worry, it's A. The gradient will be steeper if fixed costs are increased.
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Miesha
9 months ago
A) Steeper
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Wai
9 months ago
B) Not as steep
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Aleisha
10 months ago
Don't worry, it's A. The gradient will be steeper with increased fixed costs.
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Lenna
10 months ago
A) Steeper
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Candra
10 months ago
I disagree, I believe the answer is B) Not as steep.
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Bernardine
10 months ago
I think the answer is A) Steeper.
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Brynn
11 months 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.
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Willie
9 months ago
Exactly, it will require more sales to break even.
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Stevie
9 months ago
So, the gradient of the line on the PV graph will be steeper.
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Mitsue
10 months ago
Yes, you're correct. If fixed costs increase, the profit line will be steeper.
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Lawrence
10 months ago
I think the answer is A.
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Blondell
11 months ago
A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.
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Larue
11 months ago
C) Unchanged
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Margot
11 months ago
A) Steeper
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