Definition
Testing in which test cases are designed based on the flow of data within the code and within the system(s).
[Source: BCS]
Comment
Data flow testing provides greater code, transaction and test coverage. Normally this level of testing would be applied at the lowest (unit) level in full, with a risk analysis driving the key permutations of paths and data at integrated and system level tests.
Also see: White box test


On many programmes and large projects, testing will take up a significant portion of the budget. But it will receive less management attention than an activity of this size warrants.