When the First ________ Diagram Is Made, Inputs and Outputs

question 26

Multiple Choice

When the first ________ diagram is made, inputs and outputs are specified and these remain constant throughout all of the following diagrams.

• A) concept
• B) user interface
• C) design
• D) context

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Definitions:

Estimated Line of Cost Behavior

A projection or estimation of how costs change in relation to changes in an organization’s level of activity.

High-Low Method

An accounting technique used to estimate variable and fixed costs associated with a business activity by analyzing the highest and lowest levels of activity.

Scatter Diagram

A graphical representation used to show the relationship between two variables, often used in statistics and quality control to identify potential correlations.

Degree of Operating Leverage (DOL)

A measure of how much a company's operating income will change in response to a change in sales, indicating the company's sensitivity to changes in business volume.