Final answer:
CVP analysis is not infallible because it relies on assumptions that might not hold true in real-world scenarios, where variables can change and external factors can influence outcomes.
Step-by-step explanation:
Decisions made as a result of CVP analysis are not guaranteed to be the correct ones. The answer to the statement is B) False. Cost-Volume-Profit (CVP) analysis is a financial modeling tool used to estimate how changes in costs and sales volume affect a company's operating profit. However, it is based on certain assumptions, such as constant fixed costs, constant variable costs per unit, and steady sales prices. This means that any changes in these factors, which often occur in the real world, could render CVP analysis results inaccurate. Additionally, external factors such as market competition and economic conditions, which are not accounted for in CVP analysis, could affect the outcome of decisions.