Explain Two Reasons Why It Is Important to Have a Working

question 81

Essay

Explain two reasons why it is important to have a working knowledge of DFDs and flowcharting.

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Definitions:

Break-even Price

The price level at which revenues equal costs, resulting in neither profit nor loss.

Overhead Expenses

Costs not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Operating Profit

Earnings of a business before interest and taxes are deducted.

Rate of Mark-up

A pricing strategy calculation, expressed as a percentage, indicating how much higher a product's selling price is compared to its cost to produce or purchase.