Final answer:
CVP analysis is based on concepts from variable costing, a managerial accounting technique that analyzes the relationships between costs, volume, and profit. Variable costing only includes variable costs in the calculation of product costs.
Step-by-step explanation:
CVP analysis is based on concepts from variable costing. CVP analysis, which stands for Cost-Volume-Profit analysis, is a managerial accounting technique that helps businesses analyze the relationships between costs, volume, and profit. It focuses on the behavior of costs as activity levels change and how this affects profit. Variable costing is a costing method that only includes variable costs in the calculation of product costs, excluding fixed costs.