Like the ADC, the DAC it is often misunderstood.
Because the Digital-to- Analog Converter (D/A Converter or DAC) has both analog and digital functions, it is a mixed-signal device. Like the ADC, the DAC is often considered to be a mysterious device. It should, however, be considered to be the instrument that it is: a device that provides an analog output current or voltage that represents the DAC input code.
Notice that the DAC output can be a voltage or a current, depending upon the particular DAC. Also, some DACs have a reference voltage and others has a reference current. Whether a DAC has a voltage or current output has no necessary relationship to whether it has a voltage or current reference input.
A DAC has an analog reference voltage or current which is multiplied by the digital input word. So, basically, the DAC is a multiplier.