Question 1

Many manufacturing operations have been dramatically improved over the last decade as a result of advances in information systems.

Accepted Answer

Advances in information systems such as automation, robotics, and data analytics have greatly improved manufacturing operations, making them more efficient, cost-effective, and adaptable to changing market demands.

Question 2

Internal auditing is performed by individuals within an organization to determine whether the financial statements and reports produced by the financial MIS are accurate.

Accepted Answer

Internal auditing is performed by individuals within an organization to determine the accuracy and completeness of financial statements and reports produced by the financial MIS.

Question 3

The first stage in the problem-solving process involves the identification and definition of potential problems or opportunities and the investigation of environmental constraints.

Accepted Answer

The first stage in the problem-solving process involves identifying and defining potential problems or opportunities and investigating environmental constraints.

Question 4

The use of MISs span few levels of management.

Accepted Answer

Management Information Systems (MIS) are used across multiple levels of an organization, from operational to strategic management, to improve efficiency and decision-making.

Question 5

The ultimate goal of management information and decision support systems is to help managers and executives at all levels make better decisions and solve important problems.

Accepted Answer

The ultimate goal of management information and decision support systems is indeed to help managers and executives at all levels make better decisions and solve important problems, so option A is correct.

Question 6

A well-known model developed by Herbert Simon divides the decision making phase of the problem solving process into five stages.

Accepted Answer

Herbert Simon's model divides the decision-making process into three main stages: intelligence, design, and choice.

Question 7

Business decisions are always semistructured and are encountered only at the highest levels of an organization.

Accepted Answer

Business decisions can be structured, semistructured, or unstructured, and they can be encountered at various levels of an organization. While some decisions may require input from senior executives, many decisions are made at lower levels of the organization by managers and employees.

Question 8

Product design is the process of generating a new product or service to be sold by an organization to its customers.

Accepted Answer

Product design is the process of creating and developing new products or services that satisfy the needs of consumers and provide value to an organization. It involves various stages such as research, ideation, prototyping, testing, and refinement to ensure that the final product meets customer expectations and delivers on its intended purpose.

Question 9

A flexible manufacturing system determines when finished products are needed and then works backward to determine deadlines and resources needed.

Accepted Answer

A flexible manufacturing system is designed to adapt to changes in the type and quantity of production, but it does not inherently work backward from finished products to determine deadlines and resources. This description is more aligned with a Just-In-Time (JIT) production system.

Question 10

Unstructured decisions are ones where the variables that affect the decision cannot be measured quantitatively.

Accepted Answer

Unstructured decisions involve a high level of uncertainty and complexity, and often require the use of qualitative data and subjective judgment. The variables involved cannot be easily measured or quantified.

Question 11

Revenue centers are units within a company that focus primarily on generating sales.

Accepted Answer

Revenue centers are typically departments or units within a company that are responsible for generating revenue through sales of products or services. Examples of revenue centers may include sales teams, marketing departments, or e-commerce divisions.

Question 12

Most financial MISs integrate financial and operational information from multiple sources, including the Internet, into a single system.

Accepted Answer

Most financial MISs are designed to integrate financial and operational information from various sources such as databases, spreadsheets, and the Internet into a single system, providing comprehensive and up-to-date information for decision-making purposes.

Question 13

A satisficing model is one that finds a good, but not necessarily the best, solution to a problem.

Accepted Answer

A satisficing model aims to find a solution that is satisfactory or acceptable, rather than optimal or perfect.

Question 14

An MIS can be divided along functional lines to produce reports tailored to individual functions.

Accepted Answer

An MIS (Management Information System) can be divided along functional lines to produce reports tailored to individual functions. This means that the information is gathered, processed, and presented in a way that is relevant and useful to different functions within an organization, such as finance, marketing, production, and so on. Each function may have different information needs, and an MIS can be designed to meet those needs, providing customized reports that are specific to each function.

Question 15

The primary purpose of an MIS is to help an organization achieve its goals by providing managers with insight into the regular operations of the organization so they can control, organize, and plan more effectively.

Accepted Answer

This statement accurately describes the primary purpose and function of an MIS (Management Information System).

Question 16

Programmed decisions are made using a rule, procedure, or quantitative method.

Accepted Answer

Programmed decisions involve following a set of rules, procedures, or objective quantitative methods to arrive at a decision. These decisions are usually routine and repetitive, and can be easily automated.

Question 17

The economic order quantity is calculated to minimize the number of times an inventory item must be reordered.

Accepted Answer

The Economic Order Quantity (EOQ) is calculated to minimize the total holding costs and ordering costs, not specifically to minimize the number of times an item must be reordered.

Question 18

The data that enters an MIS originates entirely from internal sources.

Accepted Answer

While a large amount of data within an MIS may come from internal sources, it is possible for external data sources to also be used. For example, an MIS may use data from suppliers, customers, or industry surveys to gain a more complete understanding of the business environment.

Question 19

Product pricing is important to identify products, sales personnel, and customers that contribute to profits and those that do not.

Accepted Answer

The answer of Product pricing is important to identify products,...

Question 20

The overall objective of master production scheduling is to provide vague plans for long-range scheduling of manufacturing facilities.

Accepted Answer

The overall objective of master production scheduling (MPS) is to provide detailed planning for short-term scheduling of manufacturing facilities. MPS establishes the quantity and timing of specific end products to be produced, incorporating information on customer demand, inventory levels, and available capacity. It serves as a basis for developing more detailed schedules for specific work centers or production lines.

Quiz 10: Information and Decision Support Systems