Functional design, also known as logical design, focuses on specifying what a system will do based on user requirements, without detailing the implementation. This process logically begins by defining the desired outputs (e.g., reports, screen displays, data files). The outputs represent the primary goal and purpose of the system from the user's perspective. Once the outputs are clearly specified, the necessary inputs and processing steps required to produce those outputs can then be determined and designed. This output-driven approach ensures the system is built to meet its core objectives.

B. Organizational design: This is incorrect because it pertains to the structure of an organization, including roles, responsibilities, and hierarchies, not the design of an information system.

C. Object-Oriented design: This is incorrect as it begins by identifying objects, their attributes, and their behaviors within the problem domain, rather than starting with the system's final outputs.

D. Structured design: This is incorrect because it is a methodology for translating a pre-existing functional specification into a physical program structure. It uses the outputs defined during functional design but does not begin with their specification.

1. Shelly, G. B., Cashman, T. J., & Rosenblatt, H. J. (2011). Systems Analysis and Design (9th ed.). Cengage Learning. In Chapter 8, "Output and User Interface Design," the text emphasizes the primacy of output design: "Because outputs are the most visible and critical part of the system, some analysts believe that output design is the most important task of all. The design process starts with the outputs..." (p. 314).

2. Awad, E. M. (2007). Systems Analysis and Design (2nd ed.). Galgotia Publications. The book describes the logical design phase (functional design) and typically presents the design of system outputs as the first and most critical step. "The design of computer output is the most important...phase of the systems design. The project team's main objective is to design a system that serves users' needs. Since output is the only visible system product, it is the main basis for the justification and evaluation of the system." (Paraphrased from Chapter 10).

3. University of Texas at Austin, McCombs School of Business. (Courseware for MIS 373: Systems Analysis and Design). The course materials describe the logical design phase, stating: "The process of designing the system's logic is often called logical design (or functional design)... The first step is to design the system outputs." This explicitly links the beginning of the functional design process with the specification of outputs.