Chapter 06: Information and Decision Support Systems

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1. 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.

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REF: Why Learn About Information And Decision Support Systems

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

ANS: F PTS: 1 REF: Decision Making And Problem Solving

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

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4. During the first stage of problem solving, you identify and define potential problems or opportunities as well as investigate resource and environmental constraints.

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

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6. 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.

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REF: An Overview Of Management Information Systems

7. The use of MISs spans all levels of management.

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REF: An Overview Of Management Information Systems

8. The most significant data for an MIS is data about customers, suppliers, competitors, and stockholders.

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REF: An Overview Of Management Information Systems

9. Scheduled reports are produced periodically, such as daily weekly, or monthly.

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REF: An Overview Of Management Information Systems

10. Demand reports are automatically produced when a situation is unusual or requires management action.

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REF: An Overview Of Management Information Systems

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

ANS: T PTS: 1 REF: Functional Aspects Of The MIS

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

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

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

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

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16. Manufacturing companies seldom use CAD with new or existing products.

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

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18. Just-in-time inventory determines when finished products are needed and then works backward to determine deadlines and resources needed.

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19. Marketing functions are increasingly being performed on the Internet and mobile devices.

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20. Market research conducts formal studies of the market and customer preferences.

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21. Engagement ratings show how ads convert to sales.

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

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23. The overall purpose of the human resource planning subsystem is to aid