Chapter 11 Information Systems

Multiple Choice 1. The department in charge of recording all financial activity is the __________ department. a) human resources b) accounting c) marketing d) production Answer: B Difficulty level: Easy Page: 302 Response: Accounting departments record all financial activity from billing customers to paying employees. Which department actually creates the finished goods? a) marketing b) research c) human resources d) production Answer: D Difficulty level: Easy Page: 304 Response: The production department actually creates finished goods and services using raw materials and personnel. The __________ department handles all aspects of promotion. a) research b) marketing c) production d) accounting Answer: B Difficulty level: Easy Page: 304 Response: The marketing department plans, prices, promotes, sells and distributes the organizations goods and services. This management level is responsible for monitoring the day-to-day events in an organization and taking any required corrective action. a) supervisory CE_TB11-1

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b) middle-managerial c) stockholder d) top-managerial Answer: A Difficulty level: Medium Page: 304 Response: Supervisory management monitor the day-to-day events and takes corrective action. 5. This management level deal with control, planning and decision making. a) supervisory b) middle-managerial c) stockholder d) top-managerial Answer: B Difficulty level: Medium Page: 304 Response: Middle management deal with control, planning, and decision making. This management level is concerned with long-range planning for the organization. a) supervisory b) middle-managerial c) stockholder d) top-managerial Answer: D Difficulty level: Medium Page: 304 Response: The top management level is concerned with the long-range planning for the organization. Top managerial-level information flow is vertical, horizontal, and a) diagonal b) multidimensional c) ethereal d) external Answer: D Difficulty level: Medium Page: 305 Response: Top managerial-level information flow is vertical, horizontal, and external in focus.

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This level of management require summarized information in capsule form to reveal the overall condition of the business. a) top management b) middle management c) supervisors d) stockholders Answer: A Difficulty level: Medium Page: 306 Response: Top-level management need information that is summarized in capsule form to reveal the overall condition of the business. This level of management need access to information from outside the organization. a) top management b) middle management c) supervisors d) stockholders Answer: A Difficulty level: Medium Page: 306 Response: Top-level management need information from outside the organization because they need to forecast and plan for long range events. This level of management need summarized information such as weekly or monthly reports. a) top management b) middle management c) supervisors d) stockholders Answer: A Difficulty level: Medium Page: 306 Response: Top-level management need summarized information. These systems (__________) record day-to-day transactions such as customer orders, bills, inventory levels, and production output. a) TPS b) MIS c) DSS d) ESS Answer: A Difficulty level: Medium

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Page: 307 Response: TPS record day-to-day transactions such as these. 12. These systems (__________) summarize the detailed data of the transaction processing systems in standard reports for middle-level managers. a) CSS b) MIS c) DSS d) ESS Answer: B Difficulty level: Medium Page: 307 Response: MIS summarize the detailed data of the TPS in standard reports for middle-level managers. Management Information Systems are used by a) employee-level workers b) middle management c) supervisor-level management d) top-level management Answer: B Difficulty level: Medium Page: 307 Response: MIS are used by middle management. These systems (__________) present information in a very highly summarized form. a) TPS b) MIS c) DSS d) ESS Answer: D Difficulty level: Medium Page: 307 Response: ESS present information in a very highly summarized form. These systems (__________) help top-level managers oversee the companys operations and develop strategic plans. a) TPS b) MIS c) DSS d) ESS

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Answer: D Difficulty level: Medium Page: 307 Response: ESS help top-level managers oversee the companys operations and develop strategic plans. 16. The __________ activity records the customer requests for goods or services. a) payroll b) sales order processing c) inventory d) general ledger Answer: B Difficulty level: Easy Page: 308 Response: Sales order processing records the customer requests for the companys products or services. Money collected from or owed by customers is a) accounts payable b) inventory c) accounts receivable d) sales order processing Answer: C Difficulty level: Easy Page: 308 Response: Accounts receivable records money received from or owed by customers. The __________ control system keeps records of the number of each kind of part or finished good in the warehouse. a) payroll b) inventory c) sales order processing d) general ledger Answer: B Difficulty level: Medium Page: 308 Response: Inventory control system keeps records of the number of each kind of part or finished good in the warehouse. The buying of goods and services is referred to as a) sales order processing

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b) accounts receivable c) inventory d) purchasing Answer: D Difficulty level: Easy Page: 308 Response: Purchasing relates to the buying of goods and services. 20. The money that the company owes for goods or services is handled by a) accounts receivable b) inventory c) sales order processing d) accounts payable Answer: D Difficulty level: Medium Page: 308 Response: Accounts payable refers to money the company owes its suppliers for materials and services it has received. The __________ activity is concerned with calculating employees paychecks. a) payroll b) general ledger c) accounts payable d) sales order processing Answer: A Difficulty level: Easy Page: 308 Response: Payroll is concerned with calculating employee paychecks. The __________ is the summary of all foregoing transactions. a) inventory b) general ledger c) sales order processing d) accounts payable Answer: B Difficulty level: Easy Page: 309 Response: General ledger keeps track of all summaries of all the foregoing transactions. The __________ shows a companys financial performance. a) general ledger

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b) balance sheet c) income statement d) statement of cash flows Answer: C Difficulty level: Medium Page: 308 Response: The income statement shows the companys financial performance. 24. The overall financial condition of the organization is listed in the a) income statement b) profit and loss statement c) balance sheet d) statement of cash flows Answer: C Difficulty level: Medium Page: 309 Response: The balance sheet lists the overall financial condition of an organization. Management information systems produce reports that are a) predetermined b) encrypted c) graphically simplified d) dynamic Answer: A Difficulty level: Medium Page: 310 Response: MIS produce reports that are predetermined. __________ reports are produced at regular intervals. a) Management b) Periodic c) Exception d) Demand Answer: B Difficulty level: Medium Page: 310 Response: Periodic reports are produced at regular intervals weekly, monthly, or quarterly.

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When sales reports are combined into monthly reports for the regional sales manager, they are said to be a) management reports b) periodic reports c) exception reports d) demand reports Answer: B Difficulty level: Medium Page: 310 Response: This type of report is an example of a periodic report. A sales report that shows that certain items are selling significantly above or below marketing department forecasts is an example of this type of report. a) periodic b) demand c) inventory d) exception Answer: D Difficulty level: Medium Page: 310 Response: Exception reports call attention to unusual events. These types of systems would most likely be used to assist a manager in getting answers to unexpected and generally nonrecurring kinds of problems. a) TPS b) MIS c) DSS d) ESS Answer: C Difficulty level: Medium Page: 310 Response: DSS enable managers to get information in these situations. Which of the following refers to a decision-making support system for teams? a) TPS b) GDSS c) ESS d) MIS Answer: B Difficulty level: Medium Page: 310 Response: GDSS are used to support collective work.

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In a GDSS, the __________ is generally a decision-maker. a) programmer b) technician c) user d) client Answer: C Difficulty level: Medium Page: 311 Response: The user is someone who has to make decisions a manager, often a middle-level manager. The basic information that makes up a GDSS is called the a) system software b) user c) decision model d) data Answer: D Difficulty level: Medium Page: 311 Response: Data in the DSS make up a group decision support system. Data from within the organization consist principally of transactions from the a) TPS b) MIS c) ESS d) accounts receivable Answer: A Difficulty level: Medium Page: 311 Response: Internal data consist primarily of data from the TPS. This management level control the work of the organization, such as financial planning and sales promotion planning. a) strategic level managers b) corporate stock holders c) tactical level mangers d) operational level managers Answer: C Difficulty level: Medium Page: 311 Response: Tactical level managers are concerned with controlling the work of the organization, such as financial planning and sales promotion planning.

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This management level are responsible for accomplishing the organizations dayto-day activities. a) strategic level managers b) corporate stock holders c) tactical level mangers d) operational level managers Answer: D Difficulty level: Medium Page: 311 Response: Operational managers accomplish the organizations day-to-day activities. Which component gives a GDSS its decision-making capabilities? a) user b) data c) decision model d) system software Answer: C Difficulty level: Medium Page: 311 Response: Decision models give the DSS its analytical capabilities. These systems permit a firms top executives to gain direct access to information about the companys performance. a) TPS b) MIS c) ESS d) DSS Answer: C Difficulty level: Medium Page: 313 Response: ESS permit a firms top executives to gain direct access to information about the companys performance. These systems often present summary information in graphical format. a) TPS b) DSS c) MIS d) ESS Answer: D Difficulty level: Medium

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Page: 313 Response: ESS often display information in graphical form. 39. __________ workers distribute, communicate, and create information. a) White collar b) Data mine c) Information d) Organization Answer: C Difficulty level: Medium Page: 313 Response: Information workers distribute, communicate, and create information. Employees involved with the distribution and communication of information are called a) managers b) data workers c) IT staff d) knowledge workers Answer: B Difficulty level: Medium Page: 313 Response: Data workers are involved with the distribution and communication of information. Employees who create information are called a) managers b) data workers c) IT staff d) knowledge workers Answer: D Difficulty level: Medium Page: 313 Response: Knowledge workers are involved with the creation of information. __________ systems focus on managing documents, communicating, and scheduling. a) Office automation b) Transaction processing c) Knowledge work d) Executive support Answer: A

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Difficulty level: Medium Page: 314 Response: OAS focus on managing documents, communicating, and scheduling. 43. These systems are computer systems that allow people located at various locations to communicate and have in-person meetings. a) project managers b) videoconferencing c) telemarketing d) data conferencing Answer: B Difficulty level: Medium Page: 314 Response: Videoconferencing systems are computer systems that allow people located at various geographic locations to communicate and have in-person meetings. Which of the following is an example of a knowledge work system? a) project manager b) Web server c) Videoconferencing system d) CAD/CAM Answer: D Difficulty level: Medium Page: 314 Response: CAD/CAMs are examples of knowledge work systems. CAD/CAM would be most useful in what industry? a) motion picture b) automobile manufacturing c) food service d) retail Answer: B Difficulty level: Medium Page: 314 Response: CAD/CAM would be most useful in the automobile manufacturing industry.

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True/False 46. The accounting department records all financial transactions.

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Answer: True Difficulty level: Easy Page: 302 Response: Accounting departments record all financial activity from billing customers to paying employees. 47. The marketing department identifies, investigates, and develops new products and services. Answer: False Difficulty level: Easy Page: 304 Response: The marketing department plans, prices, promotes, sells, and distributes the organizations good and services. The human resources department manages the hiring, firing, and training of a companys personnel. Answer: True Difficulty level: Easy Page: 304 Response: The HR department manages the people. The research department handles all aspects of promotion. Answer: False Difficulty level: Easy Page: 304 Response: The research department identifies, investigates, and develops new products and services. The production department creates the finished goods. Answer: True Difficulty level: Easy Page: 304 Response: The production department actually creates the finished goods and services. Supervisor-level management deals with control, planning and decision making. Answer: False Difficulty level: Medium Page: 304

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Response: Supervisor-level managers manage and monitor the employees or workers who actually produce the goods and services. 52. Middle management monitor day-to-day operations. Answer: False Difficulty level: Easy Page: 304 Response: Supervisors monitor day-to-day operations. Top managerial-level information flow is predominately vertical. Answer: False Difficulty level: Medium Page: 305 Response: Top managerial-level information flow is horizontal, vertical, and external. Middle-managerial level information flow is both vertical and horizontal. Answer: True Difficulty level: Medium Page: 305 Response: Middle-managerial level information flow is both vertical and horizontal. The transaction processing system relies on information provided by the management information system. Answer: False Difficulty level: Medium Page: 307 Response: TPS record the day-to-day transactions in the operation of the business. The decision support system combines internal and external information to help analyze a wide range of problems. Answer: True Difficulty level: Medium Page: 307 Response: DSS combine internal and external information to help analyze a wide range of problems. A weekly production schedule is one report likely to be generated from a management information system.

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Answer: True Difficulty level: Medium Page: 310 Response: A weekly production report is a periodic report that would be generated from a MIS system. 58. ESS stands for Executive Simplified Summary. Answer: False Difficulty level: Easy Page: 312 Response: ESS is an acronym for executive support system. Executive support systems are designed to be easy to use. Answer: True Difficulty level: Medium Page: 312 Response: ESS are designed to be easily used by top-level managers. The sales order processing activity records the customer requests for goods or services. Answer: True Difficulty level: Easy Page: 308 Response: Sales order processing records the customer requests for the companys products or services. The accounts receivable activity records money received from or owed by customers. Answer: True Difficulty level: Easy Page: 308 Response: Accounts receivable records money received from or owed by customers. The parts and finished goods that a company has in stock are called surplus. Answer: False Difficulty level: Medium Page: 308 Response: Parts or finished goods are called inventory.

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Purchasing is the buying of materials and services. Answer: True Difficulty level: Easy Page: 308 Response: Purchasing is the buying of materials and services. Accounts payable is concerned with calculating employee paychecks. Answer: False Difficulty level: Easy Page: 308 Response: Accounts payable refers to money the company owes its suppliers for materials and services it has received. The general ledger refers to money the company owes. Answer: False Difficulty level: Easy Page: 309 Response: The general ledger keeps track of all summaries of all the foregoing transactions. Income statements show a companys financial performance. Answer: True Difficulty level: Easy Page: 309 Response: Income statements show a companys financial performance. A balance sheet is an example of a demand report. Answer: False Difficulty level: Easy Page: 309 Response: Balance sheets list the overall financial condition of an organization. A periodic report is created at set intervals. Answer: True Difficulty level: Easy Page: 310 Response: Periodic reports are produced at regular intervals. An exception report calls attention to unusual events. Answer: True

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Difficulty level: Easy Page: 310 Response: An exception report calls attention to unusual events. 70. Team decisions can be facilitated by the use of a GDSS. Answer: True Difficulty level: Medium Page: 310 Response: Group decision support systems (GDSS) facilitate team decisions. In general, the user of a GDSS is some sort of decision maker. Answer: True Difficulty level: Medium Page: 310 Response: In general, the user of a GDSS is taking some decision-making role. The system software provides a GDSS with its decision-making capabilities. Answer: False Difficulty level: Medium Page: 310 Response: In a GDSS the user has the decision-making capabilities. The data component of a GDSS is stored in the system software. Answer: False Difficulty level: Hard Page: 310 Response: The data component is stored in a database. There are three basic decision models used in a GDSS: operational, strategic, and financial. Answer: False Difficulty level: Hard Page: 311 Response: Decision models are strategic, tactical, and operational. Top-level management are most concerned with strategic planning. Answer: True Difficulty level: Easy Page: 311

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Response: Top-level management are concerned with strategic planning for the organization. 76. The strategic decision model assists in long-range planning. Answer: True Difficulty level: Easy Page: 311 Response: Strategic decision model certainly assists in long-range planning. The operation decision model helps to accomplish the organizations day-to-day activities. Answer: True Difficulty level: Easy Page: 311 Response: Operation decision model helps the organization in day-to-day activities. Employees who distribute, create, and communicate information are called eworkers. Answer: False Difficulty level: Easy Page: 313 Response: Employees are known as knowledge workers. Knowledge workers create information. Answer: True Difficulty level: Easy Page: 313 Response: Knowledge workers are involved with the creation of information. An office automation system consists of multifunctional robots. Answer: False Difficulty level: Easy Page: 314 Response: Office automation systems consist of data workers. Knowledge workers use specialized information systems called KWS to create information in their area of expertise. Answer: True Difficulty level: Hard

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Page: 314 Response: Knowledge workers use KWS to create information in their area of expertise. 82. CAD/CAM systems allow people located at various locations to have in-person meetings. Answer: False Difficulty level: Easy Page: 314 Response: Videoconferencing systems allow people located at various geographic locations to communicate and have in-person meetings. CAD/CAM systems use powerful microcomputers running special programs that integrate the design and manufacturing activities. Answer: True Difficulty level: Easy Page: 314 Response: CAD/CAM systems require powerful microcomputers running special programs that integrate design and manufacturing activities. Videoconferencing systems allow people located at various locations to have inperson meetings. Answer: True Difficulty level: Easy Page: 314 Response: Videoconferencing systems allow people located at various geographic locations to communicate and have in-person meetings. CAD/CAM systems are widely used in the processing of perishable products. Answer: False Difficulty level: Easy Page: 314 Response: CAD/CAM systems are widely used in manufacturing of automobiles and other products.

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