Suppose That a Friend Missed Class and Asks You to Tell

question 63

Multiple Choice

Suppose that a friend missed class and asks you to tell him, word for word, about the professor's description of the next assignment. Your description captures the basic message, even though none of your sentences are precisely what your professor said. This phenomenon is a good example of

• A) abstraction.
• B) boundary extension.
• C) change blindness.
• D) a script.

---

Definitions:

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that illustrates the relationship between total costs, total sales, and the number of units produced or sold.

Break-even Point

The point where a business's total costs and total revenues are the same, leading to neither a profit nor a loss.

Total Revenue Line

A graphical representation in break-even analysis that shows how total revenue changes with varying levels of sales volume.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.