DEFINITION of 'Functional Decomposition'
A method of business analysis that dissects a complex business process to show its individual elements. Functional decomposition is used to facilitate the understanding and management of large and/or complex processes and can be used to help solve problems. Functional decomposition is also used in computer engineering to help with software design.
BREAKING DOWN 'Functional Decomposition'
Basically, functional decomposition takes something complicated and simplifies it. The individual elements of the process and their hierarchical relationship to each other are commonly displayed in a diagram called a functional decomposition diagram. Other common business methods for simplifying complex problems and processes include decision trees, which allow users to consider multiple possible solutions to a problem, and flow charts, which show the sequence of a process.

Aggregate Function
A mathematical computation involving a set of values rather than ... 
Client Facing
A type of business role where the employee interacts directly ... 
Value Engineering
A systematic and organized approach to provide the necessary ... 
Ishikawa Diagram
A diagram that shows the causes of an event and is often used ... 
Unique Indicator
A technical indicator that can be developed using only core elements ... 
Advanced Life Underwriting
The process of integrating the complex insurance issues of estate ...

Options & Futures
Options Pricing: Profit And Loss Diagrams
A profit and loss diagram, or risk graph, is a visual representation of the possible profit and loss of an option strategy at a given point in time. Option traders use profit and loss diagrams ... 
Trading Systems & Software
Advanced Guide To The Bloomberg Terminal: Conclusion
This article has provided an advanced look at the Bloomberg system. Following an introduction, Part 2 and Part 3 looked at some of the tools available for analyzing, evaluating, and trading the ... 
Personal Finance
What Is A Business Analyst And How Much Do They Make?
Business Analysis has been a buzzword as a career option. Here is what business analysts do and how much they earn in salary and compensation. 
Home & Auto
Homebuyers' Walkthrough: Introduction
Buying a home is usually the single largest investment that a person will ever make. For most buyers, the process is lengthy, and emotionally and financially demanding. Understanding the elements ... 
Entrepreneurship
5 Key Steps to Start Your Own Small Business
Understand what a small business is and what it takes to build one. Learn about the five key steps needed to start a small business. 
Professionals
6 Top Skills You Need On Your Resume
Itâ€™s imperative for job seekers to distinguish themselves, and a good way to do so is by showing you possess the skills that are in the highest demand. 
Professionals
Microsoft Excel Features For The Financially Literate
Here are some of Excel's functions and features that a financial professional can use to make his or her job more efficient. 
Forex Education
How To Build A Trading Indicator
Wondering how people like Elliott and Gann built their famous trading tools? Learn the basics of constructing an indicator. 
Trading Systems & Software
Finviz.com Stock Screener: Account Types And Fees
There are three basic categories under which visitors will fall. Each category offers slightly different functionality. Guest: When you are a guest you can roam the site for free, and there ... 
Investing Basics
Capital Budgeting: Wrapping It All Up
All forprofit business seemingly exist on the mandate of maximizing shareholder, or owner, value. A business is essentially a series of transactions that aim at generating greater revenue and ...

What is the utility function and how is it calculated?
Learn what the utility function is in microeconomic theory and how it is calculated based on a functional form that represents ... Read Answer >> 
What is operations management theory and how can it help a business?
Discover the aspects that make up historical and modern operations management theory, and find out how they can be used to ... Read Answer >> 
For what reasons are electronics stocks commonly purchased by a value investor?
Learn about the breakdown of subjects on the Series 6 while reviewing important aspects of the exam, including its content ... Read Answer >> 
What are the differences between percentage of completion and the completed contract ...
Learn the advantages and disadvantages businesses face when using either the percentageofcompletion or completed contract ... Read Answer >> 
How do I calculate fixed asset depreciation using Excel?
Learn what depreciation is and how to use Excel to calculate depreciation for fixed assets with the straight line and sum ... Read Answer >> 
How are business decisions made in a partnership?
Understand how partners in a business can tackle decision making, and learn the options available for partnerships to develop ... Read Answer >>