Question 1

What types of systems are used to automate an organization's routine, day-to-day business activities such as data from sales or purchases from suppliers?
A) transaction processing systems
B) automated analysis systems
C) inventory control systems
D) decision support systems

Accepted Answer

Transaction processing systems are specifically designed to automate routine business activities such as sales and purchases. They are crucial for businesses that require real-time updates of their operations and financial status. Automated analysis systems, inventory control systems, and decision support systems may also play a role in automation, but they are not focused on the routine day-to-day activities of the organization.

Question 2

Which of the following specify standards for employee participation, teamwork, and problem solving?
A) employee reward programs
B) quality control systems
C) reward systems
D) statistical reports

Accepted Answer

Quality control systems often include standards for employee participation, teamwork, and problem solving as part of the overall quality improvement process. The other options may also include some elements of employee participation, but they are not specifically designed to set standards for it.

Question 3

What is the highest level of application of information technology?
A) for internal control for profitability
B) external application for new business forms
C) adding strategic value
D) for networking

Accepted Answer

Adding strategic value is the highest level of application of information technology as it involves utilizing technology to shape business strategy, gain a competitive advantage, and transform the organization. Options A, B, and D are important applications of information technology, but they do not have the same level of impact on the organization as adding strategic value.

Question 4

Which of the following is a key performance indicator of a balanced scorecard?
A) benchmarking
B) business process indicators
C) corporate social responsibility measures
D) the organization's capacity for learning and growth

Accepted Answer

Business process indicators are key performance indicators of a balanced scorecard. The balanced scorecard typically includes four perspectives, namely financial, customer, internal business processes, and learning and growth. Business process indicators measure the efficiency and effectiveness of an organization's internal processes. Benchmarking is a technique used to compare an organization's performance with the best practices of other organizations. Corporate social responsibility measures relate to how an organization manages its social and environmental impacts. The organization's capacity for learning and growth measures its ability to adapt, innovate, and improve over time. While all four perspectives are important in a balanced scorecard, business process indicators are specifically focused on measuring performance in the internal processes perspective.

Question 5

Which of the following helps managers focus on the key strategic measures that define the success of a particular organization over time and communicate them clearly through the organization?
A) networking
B) data warehousing
C) enterprise resource planning
D) the balanced scorecard

Accepted Answer

The balanced scorecard is a management tool that helps managers focus on the key strategic measures that define the success of a particular organization over time and communicate them clearly through the organization. Networking, data warehousing, and enterprise resource planning are all important business tools, but they do not specifically address this need for strategic focus and communication.

Question 6

Which of the following is a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts?
A) benchmarking
B) the balanced scorecard
C) knowledge management
D) Six Sigma

Accepted Answer

The highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts is Six Sigma. Six Sigma is a data-driven method for improving the quality of products and services through the reduction of defects to a level of 3.4 or fewer per million opportunities. It involves the use of statistical analysis and other tools to identify and eliminate sources of variability and defects in business processes.

Question 7

Which of the following is (are) a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors?
A) benchmarking
B) balanced scorecards
C) management control systems
D) Six Sigma

Accepted Answer

Balanced scorecards are a comprehensive management control system designed to balance traditional financial measures with operational measures that are critical to a company's success. It includes measures related to customer satisfaction, internal processes, and learning and growth. Benchmarking is a process of comparing a company's performance with that of other companies, and Six Sigma is a quality management methodology that aims to reduce defects and improve processes. While both of these may be part of a management control system, they do not balance financial and operational measures in the same way as a balanced scorecard. Management control systems are a broader category that includes various tools and techniques for monitoring and managing organizational performance.

Question 8

Six Sigma is based on a methodology that provides a structured way for organizations to approach and solve problems. What is the methodology?
A) define, measure, analyze, improve, control
B) data warehousing
C) executive information systems
D) benchmarking

Accepted Answer

The Six Sigma methodology involves the following five phases: define the problem or issue, measure the existing process or system, analyze the data to find the root cause of the problem, improve the process by making changes, and control the new process to ensure it stays on track. This approach is known as DMAIC (define, measure, analyze, improve, control).

Question 9

Which of the following terms refers to the use of huge databases that combine all of a company's data and allow users to access the data directly, create reports, and obtain responses to what-if questions?
A) data analytics
B) data processing
C) data storing
D) data warehousing

Accepted Answer

Data warehousing is the process of compiling data from different sources into one comprehensive database, which provides businesses with a centralized location to store, manage, and access their data. This database allows users to access the data directly, create reports, and obtain responses to what-if questions. Therefore, data warehousing is the best choice for the given scenario.

Question 10

Which of the following steps in a simplified feedback control model refers to setting targets?
A) take corrective action as needed
B) establish standards of performance
C) measure actual performance and compare to standards
D) set organizational mission and vision

Accepted Answer

Establishing standards of performance, also known as setting targets, is a crucial step in a simplified feedback control model. This step sets the expectations for what the organization wants to achieve and provides a benchmark against which actual performance can be evaluated. The other options are also important steps in the feedback control model, but they do not refer specifically to the process of setting targets.

Question 11

Which of the following are typically based on software that can convert large amounts of complex data into pertinent information and provide that information to top managers in a timely fashion?
A) decision support systems
B) executive information systems
C) information reporting systems.
D) TPS

Accepted Answer

Executive information systems (EIS) are designed to provide senior management with quick and easy access to relevant information from internal and external sources. They typically use advanced software tools to analyze large amounts of data and present information in a user-friendly format. Decision support systems (DSS) are similar to EIS, but are more focused on providing support for specific decision-making processes. Information reporting systems are designed to generate regular reports on operational activities and may not provide the same level of analytical capability as EIS. TPS (transaction processing systems) are designed to support routine transaction processing such as order entry, billing, and inventory control.

Question 12

How is access to management information systems and executive information systems typically controlled?
A) by placing them on the Internet
B) by placing them on individual PCs of authorized managers
C) by placing them on an intranet
D) by placing them on an extranet

Accepted Answer

Management information systems and executive information systems are typically controlled by placing them on an intranet, which is a private network accessible only to an organization's staff, ensuring secure and controlled access.

Question 13

Which of the following is an interactive information system designed to help managers at all levels make decisions through integrated databases in which a series of what-if questions can be posed?
A) decision support systems
B) transaction processing systems
C) management information systems
D) information linkages

Accepted Answer

Decision support systems are specifically designed to assist managers at all levels in making decisions by providing them with relevant and organized data. These systems use integrated databases and provide the ability to ask "what-if" questions, enabling managers to explore different scenarios and make informed decisions. Transaction processing systems are designed to handle routine and repetitive transactions, while management information systems provide reports and summaries to support operational and tactical decision-making. Information linkages refer to the connections between different information systems.

Question 14

Which of the following is (are) defined as the formal routines, reports, and procedures that use information to maintain or alter patterns in organizational activities?
A) management control systems
B) management information systems
C) decision support systems
D) feedback control systems

Accepted Answer

Management control systems are formal routines, reports, and procedures that use information to maintain or alter patterns in organizational activities. Management information systems provide information for decision-making, decision support systems help decision-makers analyze data to make decisions, and feedback control systems monitor and adjust ongoing activities.

Question 15

What term is used for the process of continually measuring products, services, and practices against those of tough competitors or other organizations recognized as industry leaders?
A) the balanced scorecard
B) benchmarking
C) Six Sigma
D) enterprise resource planning

Accepted Answer

Benchmarking is the term used for the process of continually measuring products, services, and practices against those of tough competitors or other organizations recognized as industry leaders, to help organizations identify areas where they can improve and stay competitive. The balanced scorecard, Six Sigma, and enterprise resource planning are other management tools and techniques used in organizations.

Question 16

Who is typically concerned with well-defined problems about operational issues and past events?
A) top management
B) first-line management
C) employees
D) middle management

Accepted Answer

First-line management is responsible for dealing with day-to-day operational issues and past events related to the organization's operations. They are concerned with resolving small-scale issues and addressing immediate problems that may arise in the organization. Top management is responsible for making strategic decisions and setting long-term goals, while middle management is responsible for coordinating and implementing these decisions. Employees are typically not involved in resolving operational issues and past events related to the organization.

Question 17

Which of the following provides mid-level managers with reports that summarize data and support day-to-day decision making?
A) executive information systems
B) decision support systems
C) information reporting systems
D) feedback control systems

Accepted Answer

Information reporting systems provide mid-level managers with reports that summarize data and support day-to-day decision making. Executive information systems are designed for top-level managers and decision-makers, providing summary information and strategic analysis. Decision support systems use quantitative models and analysis tools to support decision-making processes, typically used by higher-level management. Feedback control systems monitor organizational performance and use data to adjust operations, but do not typically provide summary reports for mid-level managers.

Question 18

What software uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant?
A) search algorithms
B) data mining
C) analytical
D) decision support systems

Accepted Answer

Data mining is the software that uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant. Search algorithms are a part of data mining. Analytical tools are used for analyzing data but may not include decision-making processes. Decision support systems help in decision-making but may not involve searching for patterns and relationships in raw data.

Question 19

Which of the following best describes the formal routines, reports, and procedures that use information to maintain or alter patterns in organization activities?
A) feedback control model
B) management control system
C) discipline policies
D) executive information system

Accepted Answer

The description given best matches the definition of a management control system, which uses information to maintain or alter patterns in organizational activities through formal routines, reports, and procedures. A feedback control model is a specific type of control system that uses feedback to maintain stability or balance in a system, but it is not specific to organizational activities. Discipline policies are focused on correcting behavior and are not necessarily related to control systems. An executive information system is a specialized information system designed to support decision-making at the executive level of an organization and is not specific to control systems.

Question 20

In what area did organizations initially apply information technology?
A) decision support systems
B) transaction processing systems
C) management information systems
D) enterprise resource planning systems

Accepted Answer

Organizations initially applied information technology in transaction processing systems, which automate routine transaction processing such as accounting, inventory management, and payroll.

Quiz 8: Information Technology and Control

What types of systems are used to automate an organization's routine, day-to-day business activities such as data from sales or purchases from suppliers?

Which of the following specify standards for employee participation, teamwork, and problem solving?

What is the highest level of application of information technology?

Which of the following is a key performance indicator of a balanced scorecard?

Which of the following helps managers focus on the key strategic measures that define the success of a particular organization over time and communicate them clearly through the organization?

Which of the following is a highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts?

Which of the following is (are) a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors?

Six Sigma is based on a methodology that provides a structured way for organizations to approach and solve problems. What is the methodology?

Which of the following terms refers to the use of huge databases that combine all of a company's data and allow users to access the data directly, create reports, and obtain responses to what-if questions?

Which of the following steps in a simplified feedback control model refers to setting targets?

Which of the following are typically based on software that can convert large amounts of complex data into pertinent information and provide that information to top managers in a timely fashion?

How is access to management information systems and executive information systems typically controlled?

Which of the following is an interactive information system designed to help managers at all levels make decisions through integrated databases in which a series of what-if questions can be posed?

Which of the following is (are) defined as the formal routines, reports, and procedures that use information to maintain or alter patterns in organizational activities?

What term is used for the process of continually measuring products, services, and practices against those of tough competitors or other organizations recognized as industry leaders?

Who is typically concerned with well-defined problems about operational issues and past events?

Which of the following provides mid-level managers with reports that summarize data and support day-to-day decision making?

What software uses sophisticated decision-making processes to search raw data for patterns and relationships that may be significant?

Which of the following best describes the formal routines, reports, and procedures that use information to maintain or alter patterns in organization activities?

In what area did organizations initially apply information technology?