CVP Analysis Assumes That the Selling Price Per Unit Does

question 73

True/False

CVP analysis assumes that the selling price per unit does not change as volume changes.

---

Definitions:

System 1

A term often used in psychology and behavioral economics, referring to the brain's fast, automatic, and intuitive approach to decision-making.

Rational Behavior

Human behavior based on comparison of marginal costs and marginal benefits; behavior designed to maximize total utility.

System 2

A term often used in psychology to refer to the deliberate, effortful, and analytical mode of thinking, contrasted with fast, automatic System 1 thinking.

Detrimental Behaviors

Actions or habits that are harmful or disadvantageous to oneself or others.