Which of the Following Statements Is Most Correct with Respect

question 54

Multiple Choice

Which of the following statements is most correct with respect to the assumptions of the cost volume profit model?

• A) The assumptions of the model are realistic.
• B) The assumptions of the model are unrealistic, and therefore the model has little usefulness.
• C) It is not possible to state whether the assumptions of the model are realistic or unrealistic.
• D) The assumptions of the model are unrealistic, but the model has great usefulness in certain circumstances, as evidenced by its use in practice.

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Definitions:

Psychological Contract

The unwritten and unspoken expectations, beliefs, and assumptions about the reciprocal obligations between employees and their employer.

Attribution

The process by which individuals explain the causes of behavior and events.

Self-Serving Bias

The tendency to explain personal success by internal causes and personal failures by external causes.

Fundamental Attribution Error

A cognitive bias where individuals attribute others' actions to their character rather than external factors.