Question 1

A needs-based strategic position involves

Accepted Answer

A needs-based strategic position focuses on serving most or all of the needs of a specific group of customers, tailoring offerings to meet their particular requirements.

Question 2

A principal focus of AIS is to assist with the decision-making function of an organization.The degree of support AIS can provide depends on the type of decision being made.Decisions are categorized in terms of the degree of existing structure or the effect of their scope.From the items below,select the description that is an example of a semi-structured decision.

Accepted Answer

A semi-structured decision is one that combines some structured elements with some unstructured elements. Setting a marketing budget for a new product can involve some structured data and analysis (such as market research and sales projections), but also requires some subjective judgment and creativity in determining the appropriate level of investment. The other options are either highly structured (A and D) or unstructured (C) decisions.

Question 3

A decision that is repetitive,routine and well understood is

Accepted Answer

A structured decision is one that is repetitive, routine, and well understood, which means that there are established procedures and guidelines in place for making the decision. This type of decision is typically easy to automate and can be made quickly and efficiently without much input from human judgment.

Question 4

A strategic position is important to the success and growth of any organization.Harvard professor Michael Porter has identified three basic strategic positions.Which statement below is false regarding these basic strategic positions?

Accepted Answer

The three basic strategic positions are not mutually exclusive. An organization can adopt a combination of these positions, although they may need to prioritize one over the others.

Question 5

Budgeting and human resource practices are examples of

Accepted Answer

Budgeting and human resource practices are both examples of management control, which involves monitoring and regulating ongoing activities to ensure they align with organizational goals and plans. Both areas involve setting guidelines, tracking performance, and making adjustments as needed to achieve desired outcomes. Strategic planning involves high-level decision-making about the long-term direction of an organization, while tactical planning focuses on short-term actions needed to achieve specific goals. Operational control involves day-to-day management of routine activities.

Question 6

Within the value chain conceptual framework,AIS is shown as a support activity.The AIS is of value to an organization when it provides accurate and timely information to help support the five primary value chain activities.When the AIS provides information in a timely and accurate manner,it stands as an example of

Accepted Answer

A well-designed and functioning AIS can contribute to all of the above benefits, including improved decision making, improved product or service quality and reduced costs, and improved efficiency in the value chain activities. Timely and accurate information provided by the AIS can help managers make informed decisions and identify areas for improvement, leading to overall improvements in the organization's performance.

Question 7

The Internet has changed the way many processes are performed in business today.The Internet has had a material effect on the five primary characteristics in the value chain and on the strategy adopted by businesses that incorporate use of the Web into their business systems.Which statement below is true regarding the Internet relative to a strategic position that a business may adopt?

Accepted Answer

The Internet has made it crucial for businesses to adopt a viable strategy to remain competitive, as it has transformed market dynamics and increased competition.

Question 8

A variety-based strategic position involves

Accepted Answer

A variety-based strategic position focuses on providing a subset of the industry's products or services, rather than trying to serve all needs or all customers.

Question 9

Decisions about the effective and efficient execution of specific tasks are concerned with

Accepted Answer

Decisions related to the execution of specific tasks are part of operational control, which involves managing the day-to-day activities of the organization to ensure that goals are achieved efficiently and effectively. Management control is concerned with monitoring overall performance, while strategic planning involves long-term planning for the organization as a whole. Tactical planning is focused on specific projects or initiatives, but doesn't necessarily involve decision-making about day-to-day task execution.

Question 10

According to Michael Porter,to be successful in the long run,a company must

Accepted Answer

Michael Porter's theory of competitive advantage states that to be successful in the long run, a company must deliver greater value to its customers than its competitors, or create comparable value at a lower cost. Maximizing profits or shareholder value is not the primary goal, but rather a result of achieving a sustainable competitive advantage.

Question 11

Business activities that pertain to product pricing,discount and credit terms,and identifying the most and least profitable items are part of the __________ activity in the organization's value chain.

Accepted Answer

Pricing, discounting, and credit terms are primarily marketing and sales activities as they are focused on generating revenue and maximizing profits through effective sales strategies. Identifying the most and least profitable items also falls under marketing and sales as it involves analyzing consumer behavior and market trends to make informed decisions about product offerings. Inbound logistics is concerned with the receipt and storage of raw materials or goods, while operations involve the actual production or delivery of goods and services. Service activities encompass post-sales services and customer support.

Question 12

A strategic position is important to the success and growth of any organization.Harvard professor Michael Porter has identified two basic business strategies.Which statement below is false regarding these basic strategies?

Accepted Answer

The statement that the two basic strategic positions are mutually exclusive is false. In fact, a company can choose to pursue either a product differentiation strategy or a low-cost strategy, or it can attempt to achieve both strategies simultaneously. However, it is worth noting that successfully executing both strategies can be challenging and may require significant resources and expertise.

Question 13

Within the value chain conceptual framework,organizations also perform a number of other support activities that enable the five primary value chain activities to be performed efficiently and effectively.One such support activity is research and development.This activity can be identified as a

Accepted Answer

Research and development is a technology activity as it involves the creation, development and improvement of technologies, products and processes to enhance the primary value chain activities. Firm infrastructure involves general management, financial management, and legal issues. Human resources activity involves attracting, training and retaining employees. Purchasing activity involves acquiring inputs for the primary activities.

Question 14

Regarding decision scope,which statement below is true?

Accepted Answer

Strategic planning involves decision-making at the highest level of the organization and focuses on setting goals, objectives, and policies to achieve them. Operational control and management control deal with decision-making at lower levels of the organization, and there is generally a correlation between a manager's level in the organization and their decision-making responsibilities. Therefore, option A and B are incorrect. Option D is also incorrect, as there is a clear correlation between a manager's level in an organization and their decision-making responsibilities.

Question 15

A well-designed AIS can improve the decision-making function within the organization.Which statement below would describe a limitation,rather than a benefit,of an efficient AIS?

Accepted Answer

The statement describes a limitation rather than a benefit because providing an abundance of information without any filtering or condensing can overwhelm the users and make it difficult for them to make informed decisions. In other words, too much information can be counterproductive and inefficient.

Question 16

A decision situation that is non-routine and for which no established framework exists for making the decision is called a(n)__________ decision.

Accepted Answer

An unstructured decision is a non-routine decision for which there is no established framework or solution. It typically requires creativity and judgment, and the decision-maker must rely on intuition and experience to make a decision. Examples of unstructured decisions include deciding whether to enter a new market or whether to launch a new product or service. Structured decisions, on the other hand, are routine decisions for which an established framework or solution exists, while semi-structured decisions lie somewhere in between. Strategic decisions are a different category altogether, as they are typically high-level, long-term decisions that affect the overall direction and goals of an organization.

Question 17

A good example of how an AIS is used to share knowledge within an organization is

Accepted Answer

Option A describes how an AIS can be used to identify experts within an organization who can help with specific client needs, thus sharing knowledge and expertise within the organization. Option B describes the use of technology for communication, Option C describes monitoring equipment, and Option D describes the use of data for sales analysis, but none of these options directly relate to the sharing of knowledge within an organization. Therefore, option A is the best choice.

Question 18

Which of the following is an example of a strategic planning decision?

Accepted Answer

The answer of Which of the following is an example...

Question 19

An access-based strategic position involves

Accepted Answer

An access-based strategic position involves serving a subset of customers who differ from other customers. This can be based on factors such as location, demographics or specific needs. It allows the firm to provide specialized services or products to a particular group of customers and establish a competitive advantage. It does not require serving all needs of all customers (option D) or providing a subset of the industry's products or services (option C). Option A is too broad, as trying to serve most or all of the needs of a particular group of customers can lead to a lack of differentiation and a weakened competitive position.

Question 20

Accounting information plays major roles in managerial decision making by

Accepted Answer

Accounting information serves to identify situations that require management action, reduce uncertainty, and provide a basis for choosing among alternative actions. This makes all of the above choices correct.

Quiz 1: Accounting Information Systems