Data flow diagram is used when a company goes outside its organization to develop a new systemQuestion 18AnswerTrueFalse

Data flow diagrams (DFDs) are utilized primarily to represent the flow of data within a system and to illustrate how inputs are transformed into outputs through various processes. They are commonly employed in system analysis and design to provide a visual understanding of data movement and process interaction.

In the context of your question, DFDs can indeed be used when a company collaborates with external entities to develop a new system, as they help clarify the data exchanges and processes involving outside parties. Therefore, the statement that "Data flow diagram is used when a company goes outside its organization to develop a new system" is True.

These diagrams facilitate communication between the stakeholders, helping to ensure that everyone involved has a clear understanding of the data requirements and operational workflows associated with the new system. In summary, they are a crucial tool for both internal analysis and external collaborations.