Chapter 011 Information Systems
Multiple Choice Questions
1. Promoting, selling, and distributing the organization's goods and services is related to
A. Marketing.
B. Production.
C. Accounting.
D. Research.
2. Creating finished goods and services using raw materials and personnel pertains to which
of the following departments?
A. Marketing
B. Research
C. Production
D. Human resources
3. Who among the following need detailed, very current, day-to-day information on units?
A. Supervisory
B. Middle-managerial
C. Stockholder
D. Top-managerial
4. This level of management uses information summarized to plan the future growth and
direction of the organization.
A. Top management
B. Middle management
C. Supervisors
D. Stockholders
5. This level of management is involved with tactical planning within an organization.
A. Top management
B. Middle management
C. Supervisors
D. Stockholders
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Chapter 011 Information Systems
6. _____ system helps supervisors by generating databases that act as the foundation for the
other information systems.
A. Decision support
B. Management information
C. Transaction processing
D. Executive support
7. Which of the following refers to a system that summarizes the detailed data of the
transaction processing systems in standard reports for middle-level managers?
A. Data processing system (DPS)
B. Management information system (MIS)
C. Decision support system (DSS)
D. Executive support system (ESS)
8. Management Information Systems are used by
A. employee-level workers.
B. supervisor-level management.
C. middle management.
D. top-level management.
9. Which among the following presents information in the most highly summarized form?
A. Transaction processing system (TPS)
B. Management information system (MIS)
C. Decision support system (DSS)
D. Executive support system (ESS)
10. A transaction processing system is also sometimes referred to as a
A. sales order processing.
B. data processing system.
C. management information system.
D. database management.
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11. The _____ activity records the customer requests for goods or services.
A. payroll
B. sales order processing
C. inventory
D. accounts receivable
12. Money collected from or owed by customers is called
A. accounts payable.
B. inventory.
C. accounts receivable.
D. sales order processing.
13. The _____ keeps records of the number of each kind of part or finished good in the
warehouse.
A. payroll
B. inventory control system
C. sales order processing
D. general ledger
14. _____ show the difference between the income and expenses of the company for a
specific time period.
A. Income statements
B. Balance sheets
C. Accounts payable
D. Inventory
15. Assets, liabilities, and the equity owned by the owners of an organization is all recorded in
the
A. balance sheet.
B. accounts payable.
C. income statement.
D. payroll.
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16. Regional managers can compare their sales reports with that of the others by using
A. management reports.
B. periodic reports.
C. exception reports.
D. demand reports.
17. 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
18. This report is used to analyze data and its reports do not have a fixed format.
A. Management information system
B. Decision support system
C. Transaction processing system
D. Executive support system
19. In a GDSS, the _____ is generally a decision-maker.
A. programmer
B. technician
C. user
D. client
20. This typically consists of transactions from the transaction processing system.
A. System software
B. External data
C. Decision model
D. Internal data
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Chapter 011 Information Systems
21. This decision model controls the work of the organization, such as financial planning and
sales promotion planning.
A. Strategic model
B. Corporate model
C. Tactical model
D. Operational model
22. These systems often can be organized to retrieve information from databases outside the
company.
A. Transaction processing system (TPS)
B. Decision support system (DSS)
C. Management information system (MIS)
D. Executive support system (ESS)
23. _____ are used in managing documents, communication and scheduling.
A. Office automation systems
B. Transaction processing systems
C. Knowledge work systems
D. Executive support systems
24. Project resources can be scheduled, planned and controlled using
A. project manager programs.
B. operational manager programs.
C. knowledge work systems.
D. CAD/CAM systems.
25. CAD/CAM would be most useful in what industry?
A. Motion picture
B. Automobile manufacturing
C. Food service
D. Retail
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Chapter 011 Information Systems
True / False Questions
26. The marketing department identifies, investigates, and develops new products and
services.
True False
27. Research department identifies, investigates, and develops new products and services.
True False
28. The production department strictly involves itself only with the creation and finish of
goods that are tangible.
True False
29. Supervisors responsibilities include operational matters.
True False
30. Middle-level managers are responsible for the planning and the implementation of longterm goals.
True False
31. Top-level managers need information both from within the organization and from
outside.
True False
32. The management information system records day-to-day transactions, such as customer
orders, bills, inventory levels, and production output.
True False
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33. The executive support system can analyze the effects of events and trends outside the
organization.
True False
34. The executive support system helps top-level managers oversee the company's operations
and develop strategic plans.
True False
35. Accounts payable refers to money the company owes its suppliers for materials and
services it has received.
True False
36. A purchase order form pertains to the sales order processing department.
True False
37. An MIS differs from the transaction processing system in that it creates databases.
True False
38. Demand reports need not be produced periodically.
True False
39. In case of a union strike, the manager in charge of manufacturing might consult the
management information system.
True False
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40. Most DSSs, although traditionally created for large computer systems, are now being used
in microcomputers too.
True False
41. Consumer profiles, census data, and economic forecasts are examples of external data.
True False
42. There are three basic decision models used in a GDSS: operational, strategic, and
financial.
True False
43. An office automation systems are primarily targeted at assisting multifunctional robots at
research facilities.
True False
44. Knowledge workers use specialized information systems called KWS to create
information in their area of expertise.
True False
45. CAD/CAM systems use powerful microcomputers running special programs that integrate
the design and manufacturing activities.
True False
Fill in the Blank Questions
46. Effective operation within any organization requires an efficient and coordinated flow of
_____ throughout the organization.
________________________________________
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Chapter 011 Information Systems
47. The _____ department tracks all sales, purchases, and transfers of funds.
________________________________________
48. _____ need weekly or monthly reports so as to be able to develop budget projections.
________________________________________
49. For supervisory managers, information is primarily _____.
________________________________________
50. Common names for computer-based information systems are transaction processing,
management information, _____ support, and executive support systems.
________________________________________
51. TPS stands for _____.
________________________________________
52. Every accounting department handles six basic activities. Five of these are sales order
processing, accounts receivable, inventory and purchasing, accounts payable, and payroll. All
of these are recorded in the _____, the sixth activity.
________________________________________
53. When an order comes in, the _____ processing activity alerts the warehouse to ship a
product.
________________________________________
54. A typical _____ system can produce income statements and balance sheets.
________________________________________
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55. An MIS requires a _____ to integrate summaries from different departments.
________________________________________
56. Monthly sales and production reports are examples of _____.
________________________________________
57. A _____ support system is used to support collective work.
________________________________________
58. A decision support system consists of the user, system software, data, and _____.
________________________________________
59. The system software is essentially the _____.
________________________________________
60. _____ models assist top-level managers in long-range planning, such as stating company
objectives or planning plant locations.
________________________________________
61. A(n) _____ support system is primarily designed for someone with little or no spare time,
who can obtain essential information without extensive training.
________________________________________
62. Some _____ support systems provide structured forms to enable managers to streamline
their thoughts before sending electronic memos.
________________________________________
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63. The fastest growing elements of the information systems are those designed to support
_____.
________________________________________
64. _____ workers are involved with the creation of information (like engineers and
scientists).
________________________________________
65. _____ systems are computer systems that allow people located at various geographic
locations to communicate and interact with each other.
________________________________________
Essay Questions
66. What are the five functions of an organization? Briefly explain.
67. Briefly describe the three levels of management.
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Chapter 011 Information Systems
68. Describe the flow of information within an organization and the different levels of
information that is required.
69. Name and describe the four most common types of computer-based information systems.
70. Describe in detail the six activities that make up the basis of a typical accounting system.
71. Explain the three common categories of reports that are generated in most organizations.
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72. Describe the functions and the working of a decision support system.
73. Describe information workers, data workers, and knowledge workers.
74. What are Office Automation Systems?
75. Describe Knowledge Work Systems. How do they work?
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Chapter 011 Information Systems Key
Multiple Choice Questions
1. (p. 315) Promoting, selling, and distributing the organization's goods and services is related to
A. Marketing.
B. Production.
C. Accounting.
D. Research.
Marketing plans, prices, promotes, sells, and distributes the organization's goods and services.
Difficulty: Easy
2. (p. 315) Creating finished goods and services using raw materials and personnel pertains to
which of the following departments?
A. Marketing
B. Research
C. Production
D. Human resources
The production department actually creates finished goods and services using raw materials
and personnel.
Difficulty: Medium
3. (p. 315) Who among the following need detailed, very current, day-to-day information on
units?
A. Supervisory
B. Middle-managerial
C. Stockholder
D. Top-managerial
Supervisors need detailed, very current, day-to-day information on their units so that they can
keep operations running smoothly.
Difficulty: Easy
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Chapter 011 Information Systems Key
4. (p. 317) This level of management uses information summarized to plan the future growth and
direction of the organization.
A. Top management
B. Middle management
C. Supervisors
D. Stockholders
Top-level managers are concerned with long-range planning (also called strategic planning).
They need information that will help them to plan the future growth and direction of the
organization.
Difficulty: Easy
5. (p. 315) This level of management is involved with tactical planning within an organization.
A. Top management
B. Middle management
C. Supervisors
D. Stockholders
Middle-level managers deal with control, planning (also called tactical planning), and
decision making. They implement the long-term goals of the organization.
Difficulty: Medium
6. (p. 319) _____ system helps supervisors by generating databases that act as the foundation for
the other information systems.
A. Decision support
B. Management information
C. Transaction processing
D. Executive support
The transaction processing system (TPS) helps supervisors by generating databases that act as
the foundation for the other information systems.
Difficulty: Hard
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Chapter 011 Information Systems Key
7. (p. 319) Which of the following refers to a system that summarizes the detailed data of the
transaction processing systems in standard reports for middle-level managers?
A. Data processing system (DPS)
B. Management information system (MIS)
C. Decision support system (DSS)
D. Executive support system (ESS)
Management information system (MIS) summarizes the detailed data of the transaction
processing system (TPS) in standard reports for middle-level managers.
Difficulty: Medium
8. (p. 319) Management Information Systems are used by
A. employee-level workers.
B. supervisor-level management.
C. middle management.
D. top-level management.
Management Information Systems (MIS) are used by middle management.
Difficulty: Medium
9. (p. 319) Which among the following presents information in the most highly summarized
form?
A. Transaction processing system (TPS)
B. Management information system (MIS)
C. Decision support system (DSS)
D. Executive support system (ESS)
ESS present information in a very highly summarized form.
Difficulty: Easy
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Chapter 011 Information Systems Key
10. (p. 320) A transaction processing system is also sometimes referred to as a
A. sales order processing.
B. data processing system.
C. management information system.
D. database management.
A transaction processing system is also sometimes referred to as a data processing system.
Difficulty: Easy
11. (p. 320) The _____ activity records the customer requests for goods or services.
A. payroll
B. sales order processing
C. inventory
D. accounts receivable
Sales order processing records the customer requests for the company's products or services.
Difficulty: Easy
12. (p. 320) Money collected from or owed by customers is called
A. accounts payable.
B. inventory.
C. accounts receivable.
D. sales order processing.
Accounts receivable records money received from or owed by customers.
Difficulty: Medium
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Chapter 011 Information Systems Key
13. (p. 321) The _____ keeps records of the number of each kind of part or finished good in the
warehouse.
A. payroll
B. inventory control system
C. sales order processing
D. general ledger
Inventory control system keeps records of the number of each kind of part or finished good in
the warehouse.
Difficulty: Medium
14. (p. 321) _____ show the difference between the income and expenses of the company for a
specific time period.
A. Income statements
B. Balance sheets
C. Accounts payable
D. Inventory
Income statements show a company's financial performance–income, expenses, and the
difference between them for a specific time period.
Difficulty: Medium
15. (p. 321) Assets, liabilities, and the equity owned by the owners of an organization is all
recorded in the
A. balance sheet.
B. accounts payable.
C. income statement.
D. payroll.
Balance sheets list the overall financial condition of an organization. They include assets (for
example, buildings and property owned), liabilities (debts), and how much of the organization
(the equity) is owned by the owners.
Difficulty: Medium
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Chapter 011 Information Systems Key
16. (p. 322) Regional managers can compare their sales reports with that of the others by using
A. management reports.
B. periodic reports.
C. exception reports.
D. demand reports.
Periodic reports are produced at regular intervals–weekly, monthly, or quarterly. For
comparison purposes, a regional manager is also able to see the sales reports of other regional
managers.
Difficulty: Hard
17. (p. 322) 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
Exception reports call attention to unusual events. An example is a sales report that shows that
certain items are selling significantly above or below marketing department forecasts.
Difficulty: Medium
18. (p. 323) This report is used to analyze data and its reports do not have a fixed format.
A. Management information system
B. Decision support system
C. Transaction processing system
D. Executive support system
A DSS is used to analyze data. Moreover, it produces reports that do not have a fixed format.
Difficulty: Medium
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Chapter 011 Information Systems Key
19. (p. 323) In a GDSS, the _____ is generally a decision-maker.
A. programmer
B. technician
C. user
D. client
The user is someone who has to make decisions – a manager, often a middle-level manager.
Difficulty: Medium
20. (p. 323) This typically consists of transactions from the transaction processing system.
A. System software
B. External data
C. Decision model
D. Internal data
Internal data in the DSS is the data from within the organization–consists principally of
transactions from the transaction processing system.
Difficulty: Hard
21. (p. 323) This decision model controls the work of the organization, such as financial
planning and sales promotion planning.
A. Strategic model
B. Corporate model
C. Tactical model
D. Operational model
Tactical models are concerned with helping middle-managers who control the work of the
organization, such as financial planning and sales promotion planning.
Difficulty: Medium
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Chapter 011 Information Systems Key
22. (p. 324) These systems often can be organized to retrieve information from databases outside
the company.
A. Transaction processing system (TPS)
B. Decision support system (DSS)
C. Management information system (MIS)
D. Executive support system (ESS)
ESS may be organized to retrieve information from databases outside the company, such as
business-news services. This enables a firm to watch for stories on competitors and stay
current on relevant news events that could affect its business.
Difficulty: Hard
23. (p. 325) _____ are used in managing documents, communication and scheduling.
A. Office automation systems
B. Transaction processing systems
C. Knowledge work systems
D. Executive support systems
OAS focus on managing documents, communication, and scheduling.
Difficulty: Medium
24. (p. 325) Project resources can be scheduled, planned and controlled using
A. project manager programs.
B. operational manager programs.
C. knowledge work systems.
D. CAD/CAM systems.
Project managers are programs designed to schedule, plan, and control project resources.
Difficulty: Medium
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Chapter 011 Information Systems Key
25. (p. 326) CAD/CAM would be most useful in what industry?
A. Motion picture
B. Automobile manufacturing
C. Food service
D. Retail
CAD/CAM would be most useful in the automobile manufacturing industry.
Difficulty: Easy
True / False Questions
26. (p. 315) The marketing department identifies, investigates, and develops new products and
services.
FALSE
Difficulty: Easy
27. (p. 315) Research department identifies, investigates, and develops new products and
services.
TRUE
Difficulty: Easy
28. (p. 315) The production department strictly involves itself only with the creation and finish
of goods that are tangible.
FALSE
Difficulty: Medium
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Chapter 011 Information Systems Key
29. (p. 315) Supervisors responsibilities include operational matters.
TRUE
Difficulty: Easy
30. (p. 315) Middle-level managers are responsible for the planning and the implementation of
long-term goals.
FALSE
Difficulty: Medium
31. (p. 317) Top-level managers need information both from within the organization and from
outside.
TRUE
Difficulty: Easy
32. (p. 319) The management information system records day-to-day transactions, such as
customer orders, bills, inventory levels, and production output.
FALSE
Difficulty: Medium
33. (p. 319) The executive support system can analyze the effects of events and trends outside
the organization.
FALSE
Difficulty: Hard
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Chapter 011 Information Systems Key
34. (p. 319) The executive support system helps top-level managers oversee the company's
operations and develop strategic plans.
TRUE
Difficulty: Easy
35. (p. 321) Accounts payable refers to money the company owes its suppliers for materials and
services it has received.
TRUE
Difficulty: Easy
36. (p. 321) A purchase order form pertains to the sales order processing department.
FALSE
Difficulty: Medium
37. (p. 322) An MIS differs from the transaction processing system in that it creates databases.
FALSE
Difficulty: Hard
38. (p. 322) Demand reports need not be produced periodically.
TRUE
Difficulty: Medium
39. (p. 322) In case of a union strike, the manager in charge of manufacturing might consult the
management information system.
FALSE
Difficulty: Medium
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Chapter 011 Information Systems Key
40. (p. 323) Most DSSs, although traditionally created for large computer systems, are now
being used in microcomputers too.
TRUE
Difficulty: Hard
41. (p. 323) Consumer profiles, census data, and economic forecasts are examples of external
data.
TRUE
Difficulty: Easy
42. (p. 323) There are three basic decision models used in a GDSS: operational, strategic, and
financial.
FALSE
Difficulty: Medium
43. (p. 325) An office automation systems are primarily targeted at assisting multifunctional
robots at research facilities.
FALSE
Difficulty: Easy
44. (p. 326) Knowledge workers use specialized information systems called KWS to create
information in their area of expertise.
TRUE
Difficulty: Medium
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Chapter 011 Information Systems Key
45. (p. 326) CAD/CAM systems use powerful microcomputers running special programs that
integrate the design and manufacturing activities.
TRUE
Difficulty: Medium
Fill in the Blank Questions
46. (p. 314) Effective operation within any organization requires an efficient and coordinated
flow of _____ throughout the organization.
information
Effective operations require an efficient and coordinated flow of information throughout the
organization.
Difficulty: Easy
47. (p. 315) The _____ department tracks all sales, purchases, and transfers of funds.
accounting
The accounting department tracks all sales, payments, and transfers of funds.
Difficulty: Easy
48. (p. 315) _____ need weekly or monthly reports so as to be able to develop budget
projections.
Middle-level managers or middle management
Middle-level managers deal with control, planning (also called tactical planning), and
decision making.
Difficulty: Medium
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Chapter 011 Information Systems Key
49. (p. 318) For supervisory managers, information is primarily _____.
vertical
For supervisory managers, information flow is primarily vertical. That is, supervisors
communicate mainly with their middle managers and with the workers beneath them.
Difficulty: Easy
50. (p. 319) Common names for computer-based information systems are transaction processing,
management information, _____ support, and executive support systems.
decision
Although different organizations may use different names, the most common names are
transaction processing, management information, decision support, and executive support
systems.
Difficulty: Medium
51. (p. 319) TPS stands for _____.
transaction processing system
The transaction processing system (TPS) records day-to-day transactions, such as customer
orders, bills, inventory levels, and production output.
Difficulty: Easy
52. (p. 321) Every accounting department handles six basic activities. Five of these are sales
order processing, accounts receivable, inventory and purchasing, accounts payable, and
payroll. All of these are recorded in the _____, the sixth activity.
general ledger
The general ledger keeps track of summaries of all of the other accounting activities.
Difficulty: Medium
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Chapter 011 Information Systems Key
53. (p. 320) When an order comes in, the _____ processing activity alerts the warehouse to ship
a product.
sales order
The sales order processing activity records the customer requests for the company's products
or services.
Difficulty: Hard
54. (p. 321) A typical _____ system can produce income statements and balance sheets.
general ledger
The general ledger keeps track of all summaries of all the accounting transactions. A typical
general ledger system can produce income statements and balance sheets.
Difficulty: Medium
55. (p. 322) An MIS requires a _____ to integrate summaries from different departments.
database management system or DBMS
An MIS can draw from the databases of several departments. Thus, an MIS requires a
database management system that integrates the databases of the different departments.
Difficulty: Hard
56. (p. 322) Monthly sales and production reports are examples of _____.
periodic reports
Periodic reports are produced at regular intervals–weekly, monthly, or quarterly, for instance.
Examples are a company's monthly sales and production reports.
Difficulty: Medium
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Chapter 011 Information Systems Key
57. (p. 323) A _____ support system is used to support collective work.
group decision
Frequently, a team is formed to address large problems. A group decision support system
(GDSS) is then used to support this collective work.
Difficulty: Medium
58. (p. 323) A decision support system consists of the user, system software, data, and _____.
decision models
Essentially, a decision support system consists of four parts: the user, system software, data,
and decision models.
Difficulty: Medium
59. (p. 323) The system software is essentially the _____.
operating system
System software is essentially the operating system – programs designed to work behind the
scenes to handle detailed operating procedures.
Difficulty: Hard
60. (p. 323) _____ models assist top-level managers in long-range planning, such as stating
company objectives or planning plant locations.
Strategic
Strategic models assist top-level managers in long-range planning, such as stating company
objectives or planning plant locations.
Difficulty: Medium
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Chapter 011 Information Systems Key
61. (p. 324) A(n) _____ support system is primarily designed for someone with little or no spare
time, who can obtain essential information without extensive training.
executive
An executive support system (ESS) is specifically designed to be easy to use. This is so that a
top executive with little spare time, for example, can obtain essential information without
extensive training.
Difficulty: Easy
62. (p. 325) Some _____ support systems provide structured forms to enable managers to
streamline their thoughts before sending electronic memos.
executive
Executive support systems (ESSs) permit a firm's top executives to gain direct access to
information about the company's performance.
Difficulty: Hard
63. (p. 325) The fastest growing elements of the information systems are those designed to
support _____.
information workers
There are many other information systems to support different individuals and functions. The
fastest-growing are information systems designed to support information workers.
Difficulty: Hard
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64. (p. 325) _____ workers are involved with the creation of information (like engineers and
scientists).
Knowledge
Data workers are involved with distribution and communication of information (like
secretaries and clerks), while knowledge workers are involved with the creation of
information (like engineers and scientists).
Difficulty: Medium
65. (p. 326) _____ systems are computer systems that allow people located at various geographic
locations to communicate and interact with each other.
Videoconferencing
Videoconferencing systems are computer systems that allow people located at various
geographic locations to communicate and have in-person meetings.
Difficulty: Easy
Essay Questions
66. (p. 315) What are the five functions of an organization? Briefly explain.
The five functions (or departments) of an organization are: accounting, marketing, research,
production, and human resources. Accounting records all financial activity from billing
customers to paying employees. It also produces reports detailing the financial condition of
the company. Marketing plans, prices, promotes, sells, and distributes the organization's
goods and services. Human resources focus on people–hiring, training, promoting, and any
number of other human-centered activities within the organization. This function relates to
people in each of the functional areas, including accountants, sales representatives, human
resource specialists, production workers, and research scientists. Production actually creates
finished goods and services using raw materials and personnel. Research identifies,
investigates, and develops new products and services.
Difficulty: Medium
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67. (p. 315) Briefly describe the three levels of management.
The three levels of management are the following: Supervisors: who manage and monitor the
employees or workers–those who actually produce the goods and services. Thus, these
managers have responsibility relating to operational matters. They monitor day-to-day events
and immediately take corrective action, if necessary. Middle management: these managers
deal with control, planning (also called tactical planning), and decision making. They
implement the long-term goals of the organization. Top management: these managers are
concerned with long-range planning (also called strategic planning). They need information
that will help them to plan the future growth and direction of the organization.
Difficulty: Medium
68. (p. 316, 317) Describe the flow of information within an organization and the different levels
of information that is required.
Each level of management has different information needs. Top-level managers need
information that is summarized in capsule form to reveal the overall condition of the business.
They also need information from outside the organization, because top-level managers need to
forecast and plan for long-range events. Middle-level managers need summarized
information–weekly or monthly reports. They need to develop budget projections and to
evaluate the performance of supervisors. Supervisors need detailed, very current, day-to-day
information on their units so that they can keep operations running smoothly. For top-level
managers, the flow of information from within the organization is both vertical and
horizontal. The top-level managers, such as the chief executive officer (CEO), need
information from below and from all departments. They also need information from outside
the organization. For middle-level managers, the information flow is both vertical and
horizontal across functional lines within the organization. For supervisory managers,
information flow is primarily vertical. That is, supervisors communicate mainly with their
middle managers and with the workers beneath them.
Difficulty: Hard
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69. (p. 319) Name and describe the four most common types of computer-based information
systems.
Transaction processing systems (TPS) record the day-to-day transactions and build the base
databases for the other systems. Management information systems (MIS) summarize the TPS
output in standard reports for middle-level managers. Decision support systems (DSS) assist
middle managers in making decisions by analyzing various scenarios. Executive support
systems (ESS) provide easy-to-use overviews of an entire organization, in a highly
summarized form.
Difficulty: Medium
70. (p. 320, 321) Describe in detail the six activities that make up the basis of a typical accounting
system.
The six basic accounting functions include sales order processing, accounts receivables,
inventory and purchasing, accounts payable, payroll, and general ledger activities. The sales
order processing activity records the customer requests for the company's products or
services, and the request is in turn processed to the warehousing department. The accounts
receivable activity records money received from or owed by customers. Inventory consists of
the parts and finished goods that the company has in stock. An inventory control system keeps
records of the number of each kind of part or finished good in the warehouse. Purchasing is
the buying of materials and services. Often a purchase order is used. Accounts payable refers
to money the company owes its suppliers for materials and services it has received. The
payroll activity is concerned with calculating employee paychecks. Paychecks may be
calculated from employee time cards or, in some cases, supervisors' time sheets. The general
ledger keeps track of all summaries of all the foregoing transactions. A typical general ledger
system can produce income statements and balance sheets.
Difficulty: Hard
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Chapter 011 Information Systems Key
71. (p. 322) Explain the three common categories of reports that are generated in most
organizations.
Periodic reports are produced at regular intervals–weekly, monthly, or quarterly, for instance.
Exception reports call attention to unusual events. An example is a sales report that shows that
certain items are selling significantly above or below marketing department forecasts. The
opposite of a periodic report, a demand report, is produced on request. Such a report is not
needed periodically, but it may be required when requested by the U.S. government.
Difficulty: Easy
72. (p. 323) Describe the functions and the working of a decision support system.
A decision support system (DSS) enables managers to get answers to unexpected and
generally nonrecurring kinds of problems. Frequently, a team is formed to address large
problems. A group decision support system (GDSS) is then used to support this collective
work. A DSS, is quite different from a transaction processing system, which simply records
data. It is also different from a management information system, which summarizes data in
predetermined reports. A DSS is used to analyze data. Moreover, it produces reports that do
not have a fixed format. This makes the DSS a flexible tool for analysis. At one time, most
DSSs were designed for large computer systems. Now, microcomputers, with their increased
power and sophisticated software, such as spreadsheet and database programs, are widely
used for DSS. Users of a DSS are managers, not computer programmers. Thus, a DSS must
be easy to use–or most likely it will not be used at all. Essentially, it consists of four parts: the
user, system software, data, and decision models.
Difficulty: Hard
73. (p. 325) Describe information workers, data workers, and knowledge workers.
Information workers distribute, communicate, and create information. They are the
organization's secretaries, clerks, engineers, and scientists, to name a few. Some are involved
with distribution and communication of information (like the secretaries and clerks). They are
called data workers. Others are involved with the creation of information (like the engineers
and scientists). They are called knowledge workers.
Difficulty: Medium
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Chapter 011 Information Systems Key
74. (p. 325) What are Office Automation Systems?
Office automation systems (OASs) are support systems designed primarily to support data
workers. These systems focus on managing documents, communicating, and scheduling.
Documents are managed using word processing, Web authoring, desktop publishing, and
other image technologies. Project managers are programs designed to schedule, plan, and
control project resources. Microsoft Project is the most widely used project manager.
Videoconferencing systems are computer systems that allow people located at various
geographic locations to communicate and have in-person meetings.
Difficulty: Easy
75. (p. 326) Describe Knowledge Work Systems. How do they work?
Knowledge workers use office automation systems (OASs). Additionally, they use specialized
information systems called knowledge work systems (KWSs) to create information in their
areas of expertise. For example, engineers involved in product design and manufacturing use
computer-aided design/computer-aided manufacturing (CAD/CAM) systems. These KWSs
consist of powerful micro-computers running special programs that integrate the design and
manufacturing activities. CAD/CAM is widely used in the manufacture of automobiles and
other products.
Difficulty: Medium
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