Final answer:
The assertion that numbers in CVP analysis must always be rounded down is false. Rounding to the nearest whole number is common in practice due to the nature of units and guests, but it's not an absolute rule.
Step-by-step explanation:
In CVP (Cost-Volume-Profit) analysis, the statement that you must always round the number of guests down to the nearest whole number is false. CVP analysis often deals with units and guests in whole numbers because you can't have a fraction of a guest or unit. However, rounding is not a rule that is always applied in CVP analysis. When determining the break-even point or target profit calculations, it's important to consider whether rounding down will significantly affect the accuracy of your results. In most cases, business decisions based on CVP analysis require rounding to the nearest whole number because partial units don't have practical implications for production or service delivery. But this does not equate to an absolute rule that must be always followed without consideration of the context.