Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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

If fixed costs are increased, the gradient of the line plotted on a profit/volume (PV) graph will be:
C) Unchanged
A) Steeper
B) Not as steep
D) Curvi-linear

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:

Show Suggested Answer Hide 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:

0/2000 characters
Submit Cancel
Carey
9 months ago
Totally agree, it’s all about variable costs for the slope!
upvoted 0 times
...
Muriel
10 months ago
Really? I thought it would change somehow.
upvoted 0 times
...
Rene
10 months ago
Definitely unchanged! Fixed costs don’t affect the slope.
upvoted 0 times
...
Ashley
10 months ago
I think it gets steeper with higher fixed costs.
upvoted 0 times
...
Jesusita
10 months ago
The gradient stays the same, right?
upvoted 0 times
...
Kattie
10 months ago
I recall that fixed costs don't change the slope, so I believe the answer is C, unchanged.
upvoted 0 times
...
Hui
11 months ago
I'm not entirely sure, but I feel like increasing fixed costs could make the line less steep, right?
upvoted 0 times
...
Madonna
11 months ago
I remember practicing a similar question, and I think the gradient is related to variable costs, so it should be unchanged.
upvoted 0 times
...
Vincenza
11 months ago
I think the gradient might stay the same because fixed costs don't affect the variable cost per unit.
upvoted 0 times
...
Adria
11 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.
upvoted 0 times
...
Margart
11 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.
upvoted 0 times
...
Latrice
11 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.
upvoted 0 times
...
Miesha
11 months ago
Hmm, this seems straightforward. I think the gradient of the line would be steeper if fixed costs increase.
upvoted 0 times
...
Margarita
11 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.
upvoted 0 times
...
Ettie
11 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.
upvoted 0 times
...
Elfrieda
11 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.
upvoted 0 times
...
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?
upvoted 0 times
Brandon
1 year ago
I'll go with D. Curvi-linear could be an interesting twist.
upvoted 0 times
...
Hermila
1 year ago
I'm not sure, but I think C. Unchanged sounds safe.
upvoted 0 times
...
Oliva
1 year ago
I'm going with B. Not as steep seems more logical to me.
upvoted 0 times
...
Gayla
1 year ago
I think A too. Steeper is the way to go.
upvoted 0 times
...
...
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.
upvoted 0 times
...
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.
upvoted 0 times
...
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.
upvoted 0 times
Glory
1 year ago
B) Not as steep
upvoted 0 times
...
Brianne
1 year ago
Don't worry, it's A. The gradient will be steeper if fixed costs are increased.
upvoted 0 times
...
Miesha
1 year ago
A) Steeper
upvoted 0 times
...
Wai
1 year ago
B) Not as steep
upvoted 0 times
...
Aleisha
1 year ago
Don't worry, it's A. The gradient will be steeper with increased fixed costs.
upvoted 0 times
...
Lenna
1 year ago
A) Steeper
upvoted 0 times
...
...
Candra
1 year ago
I disagree, I believe the answer is B) Not as steep.
upvoted 0 times
...
Bernardine
1 year ago
I think the answer is A) Steeper.
upvoted 0 times
...
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.
upvoted 0 times
Willie
1 year ago
Exactly, it will require more sales to break even.
upvoted 0 times
...
Stevie
1 year ago
So, the gradient of the line on the PV graph will be steeper.
upvoted 0 times
...
Mitsue
1 year ago
Yes, you're correct. If fixed costs increase, the profit line will be steeper.
upvoted 0 times
...
Lawrence
1 year ago
I think the answer is A.
upvoted 0 times
...
...
Blondell
1 year ago
A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.
upvoted 0 times
...
Larue
1 year ago
C) Unchanged
upvoted 0 times
...
Margot
1 year ago
A) Steeper
upvoted 0 times
...

Save Cancel