Information Systems Essentials International Edition 6th Edition by George Walter Reynolds – Test Bank

Information Systems Essentials International Edition 6th Edition by George Walter Reynolds – Test Bank

Ch 06: Information and Decision Support Systems

 

TRUE/FALSE

 

1. The ultimate goal of management information and decision support systems is to help managers at the highest level in the organization make automated decisions with little or no effort.

 

ANS:  F                    PTS:   1

 

2. A well-known model developed by Herbert Simon divides the decision making phase of the problem solving process into three stages: design, implementation, and monitoring.

 

ANS:  F                    PTS:   1

 

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

 

ANS:  T                    PTS:   1

 

4. In general, computerized decision support systems can optimize or minimize.

 

ANS:  F                    PTS:   1

 

5. Heuristics, also known as “rules of thumb,” are commonly accepted guidelines or procedures that usually find a good solution.

 

ANS:  T                    PTS:   1

 

6. An MIS provides managers and decision makers with information to help achieve organizational goals.

 

ANS:  T                    PTS:   1

 

7. Since an MIS helps make decisions about internal problems, only internal data need be entered to the MIS.

 

ANS:  F                    PTS:   1

 

8. A key indicator report summarizes the previous day’s critical activities and is typically available at the beginning of each workday.

 

ANS:  T                    PTS:   1

 

9. Demand reports are produced on a regular schedule, the same time each day, week, or month.

 

ANS:  F                    PTS:   1

 

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

 

ANS:  F                    PTS:   1

 

 

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

 

ANS:  T                    PTS:   1

 

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

 

ANS:  F                    PTS:   1

 

13. Cost centers are units within the company that do not directly generate income.

 

ANS:  T                    PTS:   1

 

14. Internal auditing involves analyzing the internal financial condition of the firm.

 

ANS:  F                    PTS:   1

 

15. The use of computerized systems is emphasized at all levels of manufacturing-from the shop floor to the executive suite.

 

ANS:  T                    PTS:   1

 

16. CAD is used in the development and design of complex structures and products.

 

ANS:  T                    PTS:   1

 

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

 

ANS:  F                    PTS:   1

 

18. A flexible manufacturing system uses computers to link the components of the production process into an effective system.

 

ANS:  F                    PTS:   1

 

19. A marketing MIS supports managerial activities in product development, distribution, pricing, promotions, and sales.

 

ANS:  T                    PTS:   1

 

20. Product development data yields valuable information for the development and marketing of new products.

 

ANS:  F                    PTS:   1

 

21. Traditionally, executives simply added a profit margin to total costs to set prices and guarantee a decent profit.

 

ANS:  T                    PTS:   1

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

 

ANS:  T                    PTS:   1

 

23. The overall purpose of the human resource planning subsystem is to aid in the recruiting and selecting of personnel.

 

ANS:  F                    PTS:   1

 

24. A decision support system includes people, procedures, software, databases, and devices to help assemble, store, manipulate, and display geographic information.

 

ANS:  F                    PTS:   1

 

25. Decision support systems are only used by the top levels of management.

 

ANS:  F                    PTS:   1

 

26. An ad hoc DSS is concerned with situations or decisions that come up frequently during the life of the organization.

 

ANS:  F                    PTS:   1

 

27. DSS and MIS 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.

 

ANS:  F                    PTS:   1

 

28. The database management system of a DSS can also connect to external databases to give decision makers even more information and decision support beyond that available through just corporate databases..

 

ANS:  T                    PTS:   1

 

29. The Delphi approach is a group decision making approach that encourages diversity among group members and fosters creativity and original thinking in decision making.

 

ANS:  T                    PTS:   1

 

30. An executive support system would never be used by members of middle management.

 

ANS:  F                    PTS:   1

 

 

MULTIPLE CHOICE

 

1. A typical DSS includes many components including the _____ which allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases.

a.	model base	c.	database
b.	dialogue manager	d.	external database access

 

 

ANS:  B                    PTS:   1

 

2. The _____ is not a component of the typical DSS?

a.	inference engine	c.	model base
b.	user interface	d.	database

 

 

ANS:  A                    PTS:   1

 

3. _____ is a common characteristic of an executive support system.

a.	Tailored for use by individual executives	c.	Can be used in situations with a high degree of uncertainty
b.	Provide drill-down capabilities	d.	All of the above

 

 

ANS:  D                    PTS:   1

 

4. The two phases of problem solving that were added by Huber to Simon’s original three-sate model were _____

a.	intelligence and design	c.	choice and implementation
b.	design and choice	d.	implementation and monitoring

 

 

ANS:  D                    PTS:   1

 

5. The first stage in the problem solving process during which one identifies and defines potential problems or opportunities is the _____ stage.

a.	design	c.	intelligence
b.	choice	d.	monitoring

 

 

ANS:  C                    PTS:   1

 

6. During the _____ stage of the problem solving process, you develop alternative solutions to the problem and evaluate their feasibility.

a.	intelligence	c.	choice
b.	implementation	d.	design

 

 

ANS:  D                    PTS:   1

 

7. The performance of decision support systems is typically a function of decision quality and _____.

a.	problem complexity	c.	hardware
b.	cost	d.	software

 

 

ANS:  A                    PTS:   1

 

 

8. The most significant internal data sources for an MIS are the organization’s _____ .

a.	various DSS and GSS systems and users	c.	various TPS and ERP systems and related databases
b.	Internet Web sites	d.	data from customers, suppliers, competitors, and stockholders

 

 

ANS:  C                    PTS:   1

 

9. _____ reports are a set of reports developed to provide certain information upon request.

a.	exception	c.	scheduled
b.	drill-down	d.	demand

 

 

ANS:  D                    PTS:   1

 

10. The _____ report summarizes the previous day’s critical activities and is typically available at the start of each workday.

a.	demand	c.	exception
b.	drill-down	d.	key-indicator

 

 

ANS:  D                    PTS:   1

 

11. The ability to _____ is a characteristic of a MIS system.

a.	provide reports with fixed and standard formats	c.	use internal data stored in the computer system
b.	allow users to develop custom reports	d.	all of the above

 

 

ANS:  D                    PTS:   1

 

12. The ability to _____ is a characteristic of a financial MIS.

a.	integrate financial and operational information from multiple sources, including the Internet	c.	enable analysis of financial data along multiple dimensions
b.	provide easy access to financial data through use of a corporate intranet to access corporate Web pages	d.	all of the above

 

 

ANS:  D                    PTS:   1

 

13. _____ is an organizational unit within an enterprise that does not directly generate revenue.

a.	Cost center	c.	Investments
b.	Sales	d.	Subscriptions

 

 

ANS:  A                    PTS:   1

 

14. The _____ MIS subsystems and outputs are used to monitor and control the flow of materials, products, and services through the organization.

a.	financial	c.	human resources
b.	manufacturing	d.	marketing

 

 

ANS:  B                    PTS:   1

 

 

15. A(n) _____ is an approach that allows manufacturing facilities to rapidly and efficiently change from making one product to another.

a.	just in time	c.	flexible manufacturing system
b.	Computer Integrated Manufacturing	d.	all of the above

 

 

ANS:  C                    PTS:   1

 

16. A(n) _____ MIS supports managerial activities in product development, distribution, pricing, promotions, and sales forecasting.

a.	manufacturing	c.	financial
b.	marketing	d.	human resources

 

 

ANS:  B                    PTS:   1

 

17. Subsystems for the marketing MIS include _____.

a.	product development	c.	use and management of funds
b.	inventory control	d.	all of the above

 

 

ANS:  A                    PTS:   1

 

18. An effective _____ MIS enables an organization to keep personnel costs at a minimum while serving the required business processes needed to achieve corporate goals.

a.	financial	c.	HR
b.	manufacturing	d.	sales

 

 

ANS:  C                    PTS:   1

 

19. The focus of a DSS is on decision-making _____ when faced with unstructured or semistructured business problems.

a.	accuracy	c.	effectiveness
b.	efficiency	d.	timeliness

 

 

ANS:  C                    PTS:   1

 

20. Decision support systems _____.

a.	although skewed toward the top levels of management, can be used at all levels	c.	support optimization, satisficing, and heuristic approaches
b.	might support a decision maker in only one or two of the problem-solving phases	d.	all of the above

 

 

ANS:  D                    PTS:   1