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CIMAPRA17-BA2-1 Exam - Topic 1 Question 67 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 67
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

The gradient of the line plotted on a profit/volume (PV) graph is determined by:

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Suggested Answer: B, C, E

https://www.cgma.org/resources/reports/globalmanagementaccountingprinciples/about-the-principles.html#?tab-1=3

by Sylvia at Apr 12, 2024, 07:50 PM

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Loreta
6 months ago
I thought it was related to units sold, but I guess not?
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Christa
6 months ago
Definitely the profit/volume ratio, no doubt!
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Keneth
6 months ago
Wait, are you sure it's not the fixed costs?
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Elbert
7 months ago
Totally agree, it's all about that ratio.
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Crista
7 months ago
The gradient is determined by the profit/volume ratio!
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Lonny
7 months ago
I'm leaning towards the profit/volume ratio as the answer, but I wish I had reviewed that section more thoroughly before the exam.
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Anabel
7 months ago
I feel like the fixed costs might play a role, but I can't recall if they directly affect the gradient on the PV graph.
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Luisa
8 months ago
I remember practicing a similar question, and I think the gradient indicates how profit changes with sales volume. Could it be the number of units sold?
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Audria
8 months ago
I think the gradient is related to the profit/volume ratio, but I'm not entirely sure if that's the right choice.
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Milly
8 months ago
I'm feeling pretty confident about this. The gradient of the PV line is determined by the profit/volume ratio, which is the slope of the line. So I'm going with option D.
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Delmy
8 months ago
This is a tricky one. I'm torn between the fixed costs and the profit/volume ratio. I'll have to review my notes on PV analysis to make sure I'm choosing the right answer.
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Willow
8 months ago
Okay, I think I've got this. The gradient of the PV line is determined by the fixed costs, since that's the y-intercept of the line. So I'll select option A.
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Scarlet
8 months ago
I'm pretty sure the gradient of the PV line is determined by the profit/volume ratio, so I'll go with option D.
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Melinda
8 months ago
Hmm, I'm a bit unsure about this one. I know the gradient is related to the fixed costs and the number of units sold, but I can't remember which one specifically. I'll have to think this through carefully.
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Felix
8 months ago
I'm confident I know the answer to this. The federal government typically requires GAAP-basis accounting, but there may be some exceptions where non-GAAP is allowed. I'll select the option that best reflects the general federal standard.
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Ronny
8 months ago
I'm confident the answer is B. Tables are a core part of the application and need to be accessible across scopes, so that's the most logical choice here.
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Dino
1 year ago
The gradient of the PV line? That's easy, it's determined by the angle of the dangle, of course!
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Yuki
11 months ago
C) The margin of safety
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Ashley
11 months ago
B) The number of units sold
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Shonda
12 months ago
A) The fixed costs
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Chantell
1 year ago
The number of units sold? Come on, that's like using a sledgehammer to crack a nut. Profit/volume ratio is the way to go.
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Myong
1 year ago
I believe the fixed costs also have a significant impact on the gradient of the line.
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Reuben
1 year ago
But what about the margin of safety? Doesn't that play a role too?
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Matthew
1 year ago
I think the profit/volume ratio is the key factor here.
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Lynelle
1 year ago
I thought the margin of safety would be the answer, but then I remembered that's not what the gradient represents. Gotta go with D.
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Samira
12 months ago
Definitely D. It's all about the profit/volume ratio when it comes to determining the gradient.
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Stefan
1 year ago
Yeah, the profit/volume ratio is what affects the slope of the line on the PV graph.
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Quentin
1 year ago
I think it's D too. The profit/volume ratio determines the gradient.
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Tennie
1 year ago
Haha, the fixed costs? That's like asking the color of the sky to determine the gradient. Definitely D!
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Cortney
1 year ago
The gradient of the PV line is determined by the profit/volume ratio, so I'm going with option D.
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Amie
12 months ago
I think it's the margin of safety that determines the gradient. I'll go with option C.
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Kimberlie
12 months ago
I remember learning that the gradient is actually determined by the profit/volume ratio, so I'm going with option D.
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Miesha
12 months ago
I'm not sure, but I think it might be related to the number of units sold. Maybe option B?
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Shawna
1 year ago
I think the gradient is determined by the profit/volume ratio too, so I agree with option D.
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Sherill
1 year ago
I agree with Josphine, the profit/volume ratio makes more sense as it directly relates to the slope of the line on the PV graph.
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Ashley
1 year ago
I believe it's actually determined by the number of units sold.
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Josphine
1 year ago
I think the gradient is determined by the profit/volume ratio.
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