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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
6 months ago
Totally agree, it’s all about variable costs for the slope!
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Muriel
6 months ago
Really? I thought it would change somehow.
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Rene
6 months ago
Definitely unchanged! Fixed costs don’t affect the slope.
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Ashley
7 months ago
I think it gets steeper with higher fixed costs.
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Jesusita
7 months ago
The gradient stays the same, right?
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Kattie
7 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
7 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
1 year 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
11 months ago
I'll go with D. Curvi-linear could be an interesting twist.
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Hermila
12 months ago
I'm not sure, but I think C. Unchanged sounds safe.
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Oliva
12 months ago
I'm going with B. Not as steep seems more logical to me.
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Gayla
1 year ago
I think A too. Steeper is the way to go.
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Ona
1 year 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
1 year 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
1 year 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
1 year ago
B) Not as steep
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Brianne
1 year ago
Don't worry, it's A. The gradient will be steeper if fixed costs are increased.
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Miesha
1 year ago
A) Steeper
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Wai
1 year ago
B) Not as steep
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Aleisha
1 year ago
Don't worry, it's A. The gradient will be steeper with increased fixed costs.
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Lenna
1 year ago
A) Steeper
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Candra
1 year ago
I disagree, I believe the answer is B) Not as steep.
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Bernardine
1 year ago
I think the answer is A) Steeper.
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Brynn
1 year 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
1 year ago
Exactly, it will require more sales to break even.
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Stevie
1 year ago
So, the gradient of the line on the PV graph will be steeper.
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Mitsue
1 year ago
Yes, you're correct. If fixed costs increase, the profit line will be steeper.
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Lawrence
1 year ago
I think the answer is A.
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Blondell
1 year ago
A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.
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Larue
1 year ago
C) Unchanged
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Margot
1 year ago
A) Steeper
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