What type of information systems monitor the elementary activities and transactions ofthe organisations?
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1 .Which of the following statements about the return on investment method ofperformance measurement are true?(1) It enables comparison of performance of divisions which are not of common size.(2) Managers’ decisions will be congruent with the goals of the organisation.(3) It does not take account of the risk of project investments being undertaken.(4) Managers will be encouraged to invest in projects with higher returns.
A 1, 2 and 3 only B 1, 2 and 4 only C 1, 3 and 4 only D 2, 3 and 4 only
2 .John is the manager of a branch of a fast food restaurant. He is responsible for purchasing,hiring staff and managing the staff rotas for each shift. He is also responsible for advertising.He cannot make investment decisions.Which of the following performance measures would be appropriate for assessingJohn’s performance?(1) Residual income(2) Customer satisfaction rankings(3) Contribution
A 2 only B 1 and 2 only C 1 and 3 only D 2 and 3 only
3 .Currently, each division of Wescon Co is required to generate a return on investment (ROI) ofat least 20%. The bonus paid to divisional managers increases in direct proportion to the ROIachieved by their division.The ROI of the Eastern division has been above 25% for several years.The head office management are considering replacing ROI with residual income (RI). Theimputed interest charge would be calculated using book values and an interest rate of 20%,with bonuses paid on any RI generated by the division.A project with a projected ROI of 21·5% is currently being considered.What decision will be made using RI and ROI?
A RI Reject;ROI Accept B RI Accept;ROI Reject C RI Accept;ROI Accept D RI Reject;ROI Reject
4 .Which one of the following types of information system is most likely to be used byoperational managers within an organisation?
A Decision support systems B Business intelligence systems C Transaction processing systems D Executive information systems
5 .Anthony’s model defines three levels of management – Strategic, Tactical and Operational.Which of the following tasks would NOT normally be performed by tactical managers?
A Preparation of budgets for the next financial year B Making pricing decisions for the local market C Deciding to move into new markets D Planning how many staff to recruit each year
7 .Projections and responses to queries are typically outputs from what type of system?
A Decision Support Systems B Management Information Systems C Executive information systems D Transactions processing systems
8 .The following statements have been made about Enterprise Resource Planning (ERP)systems:(1) They aim to allow all departments within an organisation to share information.(2) They are used only by strategic managers.(3) They typically include an accounting module.Which of the above statements are correct?
A 1 and 2 only B 1 and 3 only C 2 and 3 only D All of the above
9 .Beta Co is developing a new ERP system. The project manager is preparing a cost benefitanalysis of the system, and has been told that all costs must be classified as direct or indirect.He has asked you to assist in categorising two particular items of expenditure:(1) The annual maintenance contract with the provider of the software – this includesthe provision of a “hotline” that staff may call if they need help using the software.(2) The costs of storing the data backups. The data backups will be stored on the serverof a specialist backup company. The charges for this are variable, and depend onthe quantity of data stored.How should each of the items of expenditure be categorised?
A Item 1 Direct;Item 2 Direct B Item 1 Direct;Item 2 Indirect C Item 1 Indirect;Item 2 Direct D Item 1 Indirect;Item 2 Indirect
10 .The following statements have been made about logical access controls:(1) Their primary purpose is to stop unauthorised access to the data and software in asystem.(2) They include the use of passwords.(3) It is never possible for logical access controls to stop all unauthorised attempts toaccess confidential data.Which of the statements above are true?
A 1 and 2 B 1 and 3 C 2 and 3 D All of the above
