CIMA Exam CIMAPRA17-BA2-1 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:

AThe fixed costs

BThe number of units sold

CThe margin of safety

DThe profit/volume ratio

Show Suggested Answer

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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Dino

1 months 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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Shonda

10 days ago

A) The fixed costs

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Chantell

2 months 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

20 days ago

I believe the fixed costs also have a significant impact on the gradient of the line.

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Reuben

26 days ago

But what about the margin of safety? Doesn't that play a role too?

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Matthew

1 months ago

I think the profit/volume ratio is the key factor here.

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Lynelle

2 months 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

18 days ago

Definitely D. It's all about the profit/volume ratio when it comes to determining the gradient.

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Stefan

19 days ago

Yeah, the profit/volume ratio is what affects the slope of the line on the PV graph.

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Quentin

1 months ago

I think it's D too. The profit/volume ratio determines the gradient.

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Tennie

2 months 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

2 months 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

4 days ago

I think it's the margin of safety that determines the gradient. I'll go with option C.

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Kimberlie

6 days 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

7 days 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 months ago

I think the gradient is determined by the profit/volume ratio too, so I agree with option D.

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Sherill

2 months 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

2 months ago

I believe it's actually determined by the number of units sold.

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Josphine

3 months ago

I think the gradient is determined by the profit/volume ratio.

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