REA Diagrams for Different Organizations May Be Similar,but Will Likely

question 31

Multiple Choice

REA diagrams for different organizations may be similar,but will likely result in different relationship cardinalities because of

• A) differences in business policies.
• B) different designers of REA diagrams.
• C) different methods of drawing REA diagrams.
• D) errors in drawing REA diagrams.

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Definitions:

Investment Opportunity

An asset or item that presents a potential for profitable returns, as in interest, income, or appreciation in value.

Margin

The difference between the selling price of a product and its cost of production, often expressed as a percentage of sales.

Operating Data

Information related to the daily operations of a business, which can include sales figures, production costs, and inventory levels.

Margin

The difference between the selling price of a product and its cost, expressed as a percentage of the selling price, indicating the profitability of the product.