AIS exam 1 review questions & answers 2024/2025
An accounting system is an example of an open system? t/f - ANSWERSfalse; an accounting system is relatively closed
an accounts payable system is an example of a structured system? - ANSWERStrue ¥ There is variation in the degree of structure...
An accounting system is an example of an open system? t/f - ANSWERSfalse; an accounting system is
relatively closed
an accounts payable system is an example of a structured system? - ANSWERStrue ¥ There is variation in
the degree of structure used to make decisions:
Ð Structured decisions— very routine, strict rules, very narrow,
Ð Semi-structured decisions— some decision making involved
Ð Unstructured decisions— a lot of decision making
data is the output of an AIS? - ANSWERSfalse; it is an input and Information is the primary output of an
AIS.
"reliable" information is information that reduces uncertainty, improves decision makers ability to make
predictions, or confirms or corrects their prior expectations? - ANSWERSfalse; that is "relevance" ¥
ch1: Characteristics that make information useful:
1. Relevance—reduces uncertainty, improves decision making, or confirms or corrects prior expectations
2. Reliability—dependable and free from error or bias; accurately represents organization events or
activities
3. Completeness—doesn't leave out anything important;
4. Timeliness—received in time to affect the decision and for decision makers to make decisions
5. Understandability—presented so it's comprehensible and useful; useful and intelligible (informational)
format
6. Verifiability— two independent people produce the same result
, 7. Accessibility—available when needed in a useable format.
purchasing is a support activity in the value chain? - ANSWERStrue: ch1 support activities include: (4)
1. Firm infrastructure— activities that support the company: legal accounting,
2. Human resources— personnel for payroll,
3. Technology— IT, R&D
4. Purchasing— procurement, acquiring for business¥
Primary activities include:(5)
Ð Inbound logistics— store what you received
Ð Operations— core activities of your business, ex: starbucks sell coffee
Ð Outbound logistics— sending things out
Ð Marketing and sales— activities to promote and sell your product
Ð Service (post sale) : post sale activities. ex: warranty
budgeting is an example of a strategic planning decision? - ANSWERSfalse; that is management control I.
Levels of Decision Making Activity
1. Strategic Planning - long range, unstructured
2. Management Control - mid management, semi structured
3. Operational Control - routine, low level - structured
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