Data Flow Diagrams

question 4

Multiple Choice

Data flow diagrams:

• A) Ensure that accounting information systems function efficiently.
• B) Can indicate the database tables needed for an accounting information system.
• C) Never show internal control weaknesses in the accounting information system.
• D) Give the same information as flowcharts.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, including rent, salaries, and insurance premiums.

Contribution Margin Ratio

A financial metric that indicates the portion of sales revenue that exceeds variable costs, expressed as a percentage of total sales.

Fixed Expenses

Fixed expenses are costs that do not change with the volume of output, such as rent or salaries, providing stability in financial planning but requiring effective budget management.

Net Income

The total profit of a company after deducting all expenses, taxes, and losses, indicating its financial performance over a period.