Question

1 What information needs are generally associated with the acquire inventory business process?

a. Market Analysis

b. Vendor Performance

c. Inventory status reports

d. All of the above

2 Data differ from information in which way?

a. Data are facts about a sale

b. Information is data organized to provide meaning

c. Data are meaningful bits of information

d. There is no difference

3 Which of the following is not a characteristic that makes information useful?

a. It is reliable

b. It is timely

c. It is inexpensive

d. It is relevant

4 Which transaction cycle includes interactions between an organization and its suppliers?

a. Revenue cycle

b. Expenditure cycle

c. Human resources/payroll cycle

d. General ledger and reporting system

5 Which of the following is a function of an AIS?

a. Reducing the need to identify a strategy and strategic position.

b. Transforming data into useful information.

c. Allocating organizational resources.

d. Automating all decision making.

6 In which cycle does a company ship goods to customers?

a. Production cycle

b. Financing cycle

c. Revenue cycle

d. Expenditure cycle

7 Which of the following is a support activity in the value chain?

a. Purchasing

b. Manufacturing

c. Post-sales service

d. Receiving materials

8 The value chain concept is composed of the following two types of activities:

a. Primary and secondary

b. Primary and support

c. Support and value

d. Technology and support

9 Which of the following is a primary activity in the value chain?

a. Purchasing

b. Accounting

c. Post-sales service

d. Human resource management

10 Match the letter description listed below with the correct information characteristic listed numbers below.

___ ___ ___ ___ ___ ___ ___ ___ ___

1. Access restricted ___

2. Accurate ___

3. Available ___

4. Reputable ___

5. Complete __D_

6. Concise ___

7. Consistent ___

8. Current ___

9. Objective ___

10. Relevant _F__

11. Timely __G_

12. Useable ___

13. Understandable _A__

14. Verifiable _C__

___ ___ ___ ___ ___ ___ ___ ___ ___

a. A report was carefully designed so that its data was easily comprehended by the reader.

b. A manager working on the weekend needed information about a customer’s production requests and found it on the company’s network.

c. Before production reports are accepted, two clerks working independently must produce the same information.

d. An accounts receivable aging report included all customer accounts.

e. A report was checked by three different people to make sure it was correct.

f. An accounts receivable aging report is used in credit-granting decisions.

g. An accounts receivable aging report was received before the credit manager had to decide whether to extend credit to a customer.

h. Needing help with a decision, a manager sought the opinion of a highly regarded expert.

i. To protect intellectual property, a company encrypted the data, stored it in a very secure facility, and limited its use to five people.

j. Tired of keying supplier prices into a database, a purchasing manager insisted the data be sent in machine readable form.

k. After a lengthy, rambling presentation, a CEO insisted future presentations contain only pertinent facts and last no more than 30 minutes.

l. A new manager insisted that monthly reports look the same so she could compare a new month’s results to previous months.

m. After making a decision based on outdated data, a new CFO required all analysis to be conducted with up-to-date data.

n. Reluctant to rely on his personal feelings about a decision, a manager sought the opinion of an outside expert.

Answer 1

1) D) All the above

2) B) Information is data organized to provide meaning

3) C) It is inexpensive

4) B) Expenditure cycle

5) B) Transforming data into useful information

6) C) Revenue cycle

7) A) Purchasing

8) B) Primary and support

9) C) Post sales service

10) Matching

A) : (10) Relevant

B) : (3) Available

C) : (2) Accurate

D) : (11) Timely

E) : (5) Complete

F) : ( 14) Verifiable

G) : (12) Useable

H) : (4) Reputable

I) : (1) Access restricted

J) : (13) Understandable

K) : ( 6) Concise

L) : ( 7) Consistent

M) : (8) Current

N) : ( 9) Objective