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CIMA Exam CIMAPRA17-BA2-1 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:

ASteeper

BNot as steep

CUnchanged

DCurvi-linear

Show Suggested Answer

Suggested Answer: C

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

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Ciara

1 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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Gayla

1 months ago

I think A too. Steeper is the way to go.

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Ona

1 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

1 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

2 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

11 days ago

B) Not as steep

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Brianne

14 days ago

Don't worry, it's A. The gradient will be steeper if fixed costs are increased.

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Miesha

16 days ago

A) Steeper

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Wai

17 days ago

B) Not as steep

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Aleisha

24 days ago

Don't worry, it's A. The gradient will be steeper with increased fixed costs.

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Lenna

1 months ago

A) Steeper

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Candra

2 months ago

I disagree, I believe the answer is B) Not as steep.

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Bernardine

2 months ago

I think the answer is A) Steeper.

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Brynn

2 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

3 days ago

Exactly, it will require more sales to break even.

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Stevie

11 days ago

So, the gradient of the line on the PV graph will be steeper.

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Mitsue

23 days ago

Yes, you're correct. If fixed costs increase, the profit line will be steeper.

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Lawrence

26 days ago

I think the answer is A.

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Blondell

2 months ago

A) Steeper because fixed costs directly impact the break-even point, causing the line to become steeper.

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Larue

2 months ago

C) Unchanged

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Margot

2 months ago

A) Steeper

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