A(n) ____ Is Used to Describe the Characteristics of All

question 90

Multiple Choice

A(n) ____ is used to describe the characteristics of all data used in a system.

• A) system flowchart
• B) input/output design
• C) data dictionary
• D) preliminary design

Understand the focus areas of different business strategies (cost leadership vs. product differentiation).

Recognize the broad objectives and needs of management accounting.

Explain the role of objectivity in management accounting and ethical considerations in decision-making.

Identify the influence of external factors and concepts like contingency theory on management accounting systems.

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of any change in a company's production volume.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out.

Average Variable Costs

represent the variable costs (costs that change with output level) per unit of output, calculated by dividing the total variable costs by the quantity of output produced.