ACCA Performance Management (F5) Certification Practice Exam

In a graph, if the slope is flat, which product's contribution is higher?

1. The product on the horizontal axis

2. Both products contribute equally

3. The product on the vertical axis

4. Neither product contributes anything

The correct answer is: The product on the vertical axis

When analyzing a graph where the slope is flat, it typically indicates that there is no change in the value on the vertical axis in relation to changes on the horizontal axis. In this context, the product represented on the vertical axis has a higher contribution because a flat slope suggests that the quantity or value associated with the horizontal product does not significantly affect the outcome represented on the vertical axis. In more specific terms, if a product is placed on the vertical axis and its contribution remains unaffected regardless of changes in the horizontal product, it implies a dominant contribution from the vertical product. Therefore, when the slope is flat, we can infer that fluctuations or changes in the product on the horizontal axis do not impact the overall output or results primarily dictated by the vertical product. Hence, the conclusion drawn here is that the product on the vertical axis is contributing more significantly, as the graph reflects a state where the horizontal product does not influence or alter the scope of contribution, revealing that the vertical product's contribution remains consistent and relevant.