EXAM 1 AIS REVIEW QUESTIONS & ANSWERS 2024/2025
What are primary activities? - ANSWERSDirectly provide value to its customers
List the primary activites - ANSWERSInbound logistics, operations, outbound logistic, sales/marketing, service
What are support activities? - ANSWERSbusiness acti...
What are primary activities? - ANSWERSDirectly provide value to its customers
List the primary activites - ANSWERSInbound logistics, operations, outbound logistic, sales/marketing,
service
What are support activities? - ANSWERSbusiness activities that do not add value directly to a firm's
product or service under consideration but support the primary activities that do add value
List the support activities - ANSWERSFirm Infrastructure, HR, Technology, Purchasing
Give examples of the support activities - ANSWERSFirm Infrastructure- Legal, accounting, and finance
departments. This is where the AIS system is.
HR- recruiting, employee compensation, training.
Technology- research and development.
Purchasing- includes acquiring raw materials as well as the building used to carry out primary activities.
What is a system? - ANSWERSa set of two or more interrelated components that interact to achieve a
goal
Goal Conflict - ANSWERSwhen a subsystem's goals are inconsistent with the goals of another subsystem
or the system as a whole
Goal Congruence - ANSWERSwhen a subsystem achieves its goals while contributing to the organization's
overall goal
Integration - ANSWERSAllows separate systems to communicate directly with each other, eliminating the
need for manual entry into multiple systems. Eliminates duplicate recordings.
,Data - ANSWERSfacts that are collected, recorded, stored, and processed by an information system
Information - ANSWERSData converted into a meaningful and useful context
Information Overload - ANSWERSA condition in which information inflow exceeds an individual's
processing capacity
What are the characteristics of useful information? - ANSWERSRelevant
Reliable
Complete
Timely
Understandability
Verifiable
Accessible
NOTE: ALL ARE FROM FRAMEWORKS ACCEPT ACCESSIBLE WHICH IS A COMBO OF TIMELY AND
UNDERSTANDABILITY
Data differs from information in which way? - ANSWERSData is input, information is output.
Which of the following is NOT a characteristic that make information useful? - ANSWERSIt is expensive
What is the value of information - ANSWERSthe benefit produced by the information minus the cost of
producing it
Which of the following is NOT a means by which information improves decision making? -
ANSWERSIncreasing information overload.
Business Processes/ Transaction Cycle - ANSWERSThe revenue cycle
, The expenditure cycle
The production cycle
HR/Payroll
The financing cycle
For each business process list the give/ get - ANSWERSRevenue- get cash/AR, give goods and service
Expense- get goods and materials, give cash/ AP
Production- get goods, give materials
HR- get labor, give cash
Financing- get cash, give cash
Which transaction cycle includes interactions between an organization and its suppliers? -
ANSWERSexpenditure cycle
In which cycle does a company ship goods to customers - ANSWERSRevenue cycle
What is an AIS system? - ANSWERSsystem that collects, records, and processes data to produce
information for decision makers.
What are the 6 components of AIS? - ANSWERSThe people who operate the system
The procedures and instructions involved in collecting, processing and storing data
The data about the organization and its business practices
The software used to process the organization's data
The information technology infrastructure including computers and network communications
The internal controls and security measures that safeguard the data
Which of the following is a function of an AIS? - ANSWERStransforming data into useful information
How does AIS add value to an organization? - ANSWERSImprove the quality and reduce the costs of
products and services.
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