Chapter 06: Information and Decision Support Systems
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.
a.
True
b.
False
True
1
Easy
06.01
2. A well-known model developed by Herbert Simon divides the decision making phase of the problem solving process
into five stages.
a.
True
b.
False
False
1
Easy
06.01
3. The first stage of the problem-solving process involves identifying and defining potential problems or opportunities.
a.
True
b.
False
True
1
Easy
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4. Programmed decisions are made using a rule, procedure, or quantitative method.
a.
True
b.
False
True
1
Easy
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5. A satisficing model is one that finds a good, but not necessarily the best, solution to a problem.
a.
True
b.
False
Chapter 06: Information and Decision Support Systems
True
1
Easy
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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.
a.
True
b.
False
True
1
Easy
06.03
7. The use of management information systems spans all levels of management in an organization.
a.
True
b.
False
True
1
06.03
8. The input to most management information systems is a collection of reports that are provided by managers.
a.
True
b.
False
False
1
Easy
06.03
9. Scheduled reports generated by management information systems are produced periodically, such as daily weekly, or
monthly.
a.
True
b.
False
True
1
Easy
10. An executive dashboard is a diagram that presents a set of key performance indicators about the state of a process at a
specific point in time to enable managers make better real-time decisions.
a.
True
b.
False
True
1
Easy
06.03
11. A management information system can be divided along functional lines to produce reports tailored to individual
functions.
a.
True
b.
False
True
1
Easy
06.04
12. Most financial management information systems integrate financial and operational information from multiple
sources, including the Internet, into a single system.
a.
True
b.
False
True
1
Easy
06.04
13. In the context of financial management information systems, transaction processing systems or enterprise systems
capture transactions entered by workers in all functional areas of the business.
a.
True
b.
False
True
1
Easy
06.04
06.03
14. Auditing provides an objective appraisal of the accounting, financial, and operational procedures and information of
an organization.
a.
True
b.
False
True
1
Easy
06.04
15. Many manufacturing operations have been dramatically improved over the last decade as a result of advances in
information systems.
a.
True
b.
False
True
1
Easy
06.04
16. Manufacturing companies seldom use computer-assisted design with new or existing products.
a.
True
b.
False
False
1
Easy
06.04
17. The economic order quantity is calculated to minimize the number of times an inventory item must be reordered.
a.
True
b.
False
False
1
Easy
06.04
18. When the inventory level for a particular item falls to the reorder point, an inventory management system generates a
report to stop any further orders of the item.
a.
True
b.
False
False
1
Easy
06.04
19. Marketing functions determine the various media to be used to inform potential customers about a product or service.
a.
True
b.
False
True
1
Easy
06.04
20. Marketing functions are increasingly being performed on the Internet and mobile devices.
a.
True
b.
False
True
1
Easy
06.04
21. Product pricing is important to identify products, sales personnel, and customers that contribute to profits and those
that do not.
a.
True
b.
False
False
1
Easy
06.04
22. Smaller companies hesitate to hire outside accounting firms to assist them with their accounting functions.
a.
True
b.
False
Chapter 06: Information and Decision Support Systems
False
1
Easy
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23. Developers of decision support systems have made them less flexible compared to management information systems.
a.
True
b.
False
False
1
Easy
06.05
24. Decision support systems can provide help for managers at various levels within an organization.
a.
True
b.
False
True
1
Easy
06.05
25. Decision support systems and management information systems are actually quite similar in numerous ways,
including the types of problems solved, the support given to users, and the decision emphasis and approach.
a.
True
b.
False
False
1
Easy
06.05
26. The dialogue manager of a decision support system can also connect to external databases to give decision makers
even more information and decision support beyond that available through just corporate databases.
a.
True
b.
False
False
1
Easy
27. The Delphi approach is a group decision making approach that encourages diversity among group members and
fosters creativity and original thinking in decision making.
a.
True
b.
False
False
1
Easy
06.07
28. The nominal group technique (NGT) is a structured method for group brainstorming that encourages contributions
from the top management of an organization.
a.
True
b.
False
False
1
Easy
06.07
29. Multivoting is any one of a number of voting processes used in the nominal group technique of decision-making to
reduce the number of options to be considered.
a.
True
b.
False
True
1
Easy
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30. With a group decision support system, people must take turns addressing various issues, and one person normally talks
at a time.
a.
True
b.
False
False
1
Easy
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06.06
31. In the context of decision support system framework developed by Anthony Gorry and Michael Scott Morton, one
characteristic of a structured decision is that _____.
it involves known variables that can be
measured quantitatively
b.
the relationships among the pieces of data are not always
clear
it involves known variables that cannot be
measured quantitatively
d.
the decision maker might not know the information
requirements of the decision in advance
a
1
Moderate
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United States – BUSPROG: Technology
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32. According to Anthony Gorry and Michael Scott Morton’s framework on decision support systems, the decisions
where only some of the variables can be measured quantitatively are called _____.
programmed decisions
b.
unstructured decisions
nonprogrammed decisions
d.
semistructured decisions
d
1
Easy
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33. The two phases of problem solving added by Huber to Simon’s original three-stage model of decision-making are
_____.
intelligence and design
b.
implementation and monitoring
choice and implementation
d.
design and choice
b
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Easy
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34. In the _____ stage of the problem-solving process, alternative solutions to a problem are developed and their
feasibility is evaluated.
intelligence
b.
implementation
design
d.
choice
c
1
Easy
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35. During the _____ stage of the decision-making phase, a course of action is selected.
intelligence
b.
implementation
choice
d.
design
c
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36. _____ is the stage of the problem-solving process in which a solution is put into effect.
Decision
b.
Monitoring
Choice
d.
Implementation
d
1
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37. The performance of decision support systems is typically a function of decision quality and _____.
hardware compatibility
b.
cost effeectiveness
problem complexity
d.
software design
c
1
Easy
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38. The most significant internal data sources for a management information system are an organization’s _____.
data from customers, suppliers, competitors, and
stockholders
b.
various Transaction Processing Systems (TPS) and
Enterprise Resource Planning (ERP) systems and
related databases
executive dashboards containing a set of key
performance indicators about the state of a
process
at a specific point in time
d.
various decision supporting systems (DSS) and group
decision supporting systems (GSS) and users
b
1
Moderate
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United States – BUSPROG: Technology
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39. A(n) _____ is a type of management report that is automatically produced when a situation is unusual or requires
management action.
exception report
b.
drill-down report
scheduled report
d.
demand report
1
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40. In the context of types of reports generated by management information systems (MIS), a(n) _____ summarizes the
previous day’s critical activities in an organization and is typically available at the beginning of each workday.
exception report
b.
drill-down report
key-indicator report
d.
demand report
1
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41. In the context of financial MIS subsystems and outputs, a _____ is an independent business unit that is treated as a
distinct entity enabling its revenues and expenses to be determined and its profitability to be measured.
cost center
b.
revenue center
profit center
d.
sales center
1
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42. _____ are divisions within a company that do not directly generate revenue.
Profit centers
b.
Sales centers
Revenue centers
d.
Cost centers
d
1
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43. A(n) _____ is an assessment of how well management uses the resources of an organization and how effectively
organizational plans are being executed.
external audit
b.
financial audit
internal audit
d.
operational audit
d
1
Easy
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44. _____ auditing is performed by employees within an organization.
Employee
b.
Financial
Internal
d.
Operational
c
1
Easy
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45. The _____ MIS subsystems and outputs are used to monitor and control the flow of materials, products, and services
through an organization.
human resources
b.
marketing
financial
d.
manufacturing
d
1
Easy
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46. In the context of number of technologies used to control and streamline a manufacturing process, the goal of a _____
system is to tie together all aspects of production, including order processing, product design, manufacturing, inspection
and quality control, and shipping.
computer-assisted manufacturing
b.
computer integrated manufacturing
flexible manufacturing system
d.
computer-assisted design
b
1
Easy
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Bloom’s: Knowledge
47. A _____ MIS uses data gathered from both internal and external sources to provide reporting and aid decision making
in areas of product design, media selection, channel distribution, and product pricing.
human resources
b.
financial
marketing
d.
manufacturing
c
1
Easy
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United States – BUSPROG: Technology
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48. An effective _____ MIS enables an organization to keep personnel costs at a minimum while serving the required
business processes needed to achieve corporate goals.
financial
b.
manufacturing
human resource
d.
sales forecasting
c
1
Easy
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49. A typical decision support system (DSS) includes many components including a(n) _____ which allows decision
makers to easily access and manipulate the DSS and to use common business terms and phrases.
model base
b.
dialogue manager
database
d.
external database access
b
1
Easy
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50. A(n) _____ is the component of a decision support system that allows managers and decision makers to perform
quantitative analysis on both
internal and external data.
model base
b.
dialogue manager
executive dashboard
d.
database
a
1
Easy
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51. The focus of a DSS is on decision-making _____ when faced with unstructured or semistructured business problems.
accuracy
b.
efficiency
effectiveness
d.
timeliness
c
1
Easy
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52. The _____ is NOT a component of the typical DSS.
database
b.
user interface
model base
d.
inference engine
d
1
Easy
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United States – BUSPROG: Technology
Bloom’s: Knowledge
53. Developers of _____ try to build on the advantages of individual support systems while adding new approaches
unique to group decision making.
DSS
b.
MIS
GSS
d.
GIS
c
1
Easy
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United States – BUSPROG: Technology
Bloom’s: Knowledge
54. The _____ approach forces members of a decision making group to reach a unanimous decision.
Delphi
b.
brainstorming
group consensus
d.
nominal group
c
1
Easy
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United States – BUSPROG: Technology
Bloom’s: Knowledge
55. In the context of group decision support system alternatives, _____ can be used when group members are located in
the same building or geographic area and under conditions in which group decision making is frequent.
decision rooms
b.
wide area decision networks
teleconferencing
d.
local area decision networks
Chapter 06: Information and Decision Support Systems
56. _____ includes and goes beyond decision making, and it also includes the implementation stage when the solution is
put into effect.
57. The final stage of the problem-solving process during which decision makers evaluate the implementation is called the
_____ stage.
58. _____ decisions deal with unusual or exceptional situations and, in many cases, these decisions are difficult to
quantify.
59. In general, computerized decision support systems can either optimize or _____.
60. In the context of computerized decision support systems, a(n) _____ model finds the best solution to a problem,
usually the one that will best help an organization meet its goals.
61. In the context of computerized decision support systems, _____ is used when modeling a problem properly to get an
optimal decision would be too difficult, complex, or costly.
62. _____ are commonly accepted guidelines or procedures that experience has shown usually leads to a good solution.
63. A(n) _____ provides managers with information that supports effective decision making and provides feedback on
daily operations.
64. _____ reports are a type of MIS reports that are developed to provide certain information upon request than on a
schedule.
65. In the context of types of reports generated by MIS, _____ reports provide increasingly detailed data about a situation
that helps analysts to see data at a high level first and then at a more detailed level.
66. A(n) _____ MIS provides financial information for workers who need to make better decisions on a daily basis.
67. A(n) _____ is an organizational unit that gains revenue from the sale of products or services.
68. An organization might hire an outside accounting firm to perform a(n) _____ to assess the financial condition of the
firm and determine whether financial statements and reports produced by its financial MIS are accurate.
69. In the context of process control, computers can directly control manufacturing equipment using _____ systems to
control drilling machines, assembly lines, and more.
70. _____ is an approach that maintains inventory at the lowest levels without sacrificing the availability of finished
products.
71. A(n) _____ is an approach that allows manufacturing facilities to rapidly and efficiently change from making one
product to making another.
72. The purpose of _____ is to analyze the market to identify threats, opportunities, and customer needs and wants.
73. In the context of subsystems for a marketing MIS, _____ is the combination of various advertising channels used to
meet the objectives of a marketing program.
74. _____ services are offered by many companies when employees leave the company in order to help them make the
transition.
75. A(n) _____ MIS helps in providing aggregate information on accounts payable, accounts receivable, payroll, and
many other applications.
76. A(n) _____ is a computer system capable of assembling, storing, manipulating, and displaying geographically
referenced information; that is, data identified according to its location.
1
77. A(n) _____ DSS is concerned with situations or decisions that come up only a few times during the life of an
organization.
1
78. A(n) _____ DSS handles situations or decisions that occur more than once, usually several times per year or more.
1
79. In the _____ decision-making approach, members of a group offer suggestions “off the top of their heads.”
1
80. _____ communications are used by many organizations to support decision making, it ties together and integrates
various communications systems, including traditional phones, cell phones, e-mail, text messages, the Internet, and more.
1
81. Briefly describe the five stage decision-making process.
Chapter 06: Information and Decision Support Systems
82. Explain the difference between an optimization and satisficing model.
83. Identify and briefly describe the various kinds of reports frequently produced by an MIS.
84. Define the term decision support system (DSS) and briefly describe the basic capabilities of a DSS.
85. What sort of negative group behavior can lead to ineffective group decision making?