A Method That Provides Conceptual Freedom for Representing Processes and Flows

question 31

Multiple Choice

A method that provides conceptual freedom for representing processes and flows in a business system is the:

• A) database.
• B) entity-relationship diagram.
• C) data flow diagram.
• D) flow chart.

---

Definitions:

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, salaries, and insurance.

Operating Leverage

A financial concept that measures the extent to which a firm can increase operating income by increasing revenue, highlighting the impact of fixed versus variable costs.

Break-even Point

The point at which total costs equal total revenue, meaning the business makes neither a profit nor a loss.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials, labor, and utility costs.