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The gradient of the line plotted on a profit/volume (PV) graph is determined by:
Suggested Answer: B, C, E
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37 comments · newest first
LO
Loreta
11 months ago
I thought it was related to units sold, but I guess not?
CH
Christa
11 months ago
Definitely the profit/volume ratio, no doubt!
KE
Keneth
11 months ago
Wait, are you sure it's not the fixed costs?
EL
Elbert
12 months ago
Totally agree, it's all about that ratio.
CR
Crista
12 months ago
The gradient is determined by the profit/volume ratio!
LO
Lonny
1 year 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.
AN
Anabel
1 year 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.
LU
Luisa
1 year 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?
AU
Audria
1 year ago
I think the gradient is related to the profit/volume ratio, but I'm not entirely sure if that's the right choice.
MI
Milly
1 year 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.
DE
Delmy
1 year 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.
WI
Willow
1 year 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.
SC
Scarlet
1 year 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.
ME
Melinda
1 year 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.
FE
Felix
1 year 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.
RO
Ronny
1 year 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.
DI
Dino
1 year ago
The gradient of the PV line? That's easy, it's determined by the angle of the dangle, of course!
YU
Yuki
1 year ago
C) The margin of safety
AS
Ashley
1 year ago
B) The number of units sold
SH
Shonda
1 year ago
A) The fixed costs
CH
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.
MY
Myong
1 year ago
I believe the fixed costs also have a significant impact on the gradient of the line.
RE
Reuben
1 year ago
But what about the margin of safety? Doesn't that play a role too?
MA
Matthew
1 year ago
I think the profit/volume ratio is the key factor here.
LY
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.
SA
Samira
1 year ago
Definitely D. It's all about the profit/volume ratio when it comes to determining the gradient.
ST
Stefan
1 year ago
Yeah, the profit/volume ratio is what affects the slope of the line on the PV graph.
QU
Quentin
1 year ago
I think it's D too. The profit/volume ratio determines the gradient.
TE
Tennie
1 year ago
Haha, the fixed costs? That's like asking the color of the sky to determine the gradient. Definitely D!
CO
Cortney
2 years ago
The gradient of the PV line is determined by the profit/volume ratio, so I'm going with option D.
AM
Amie
1 year ago
I think it's the margin of safety that determines the gradient. I'll go with option C.
KI
Kimberlie
1 year ago
I remember learning that the gradient is actually determined by the profit/volume ratio, so I'm going with option D.
MI
Miesha
1 year ago
I'm not sure, but I think it might be related to the number of units sold. Maybe option B?
SH
Shawna
1 year ago
I think the gradient is determined by the profit/volume ratio too, so I agree with option D.
SH
Sherill
2 years 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.
AS
Ashley
2 years ago
I believe it's actually determined by the number of units sold.
JO
Josphine
2 years ago
I think the gradient is determined by the profit/volume ratio.