Characteristics of Useful Information
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Questions and Answers

What is the main purpose of the production support activities?

  • To deal with the strategic problems of product promotion, advertising, and market research
  • To keep the firm's machinery and other manufacturing facilities in running order
  • To ensure that primary manufacturing activities operate efficiently and effectively (correct)
  • To shape and assemble raw materials into finished products

What is the main purpose of the distribution function?

  • To schedule the flow of materials, labor, and machinery to efficiently meet production needs
  • To deal with the strategic problems of product promotion, advertising, and market research
  • To get the product to the customer after the sale (correct)
  • To keep the firm's machinery and other manufacturing facilities in running order

What does the marketing function primarily deal with?

  • Keeping the firm's machinery and other manufacturing facilities in running order
  • Monitoring the manufacturing process at various points to ensure that the finished products meet the firm's quality standards
  • The strategic problems of product promotion, advertising, and market research (correct)
  • Scheduling the flow of materials, labor, and machinery to efficiently meet production needs

What is the main purpose of the production planning activity?

<p>To schedule the flow of materials, labor, and machinery to efficiently meet production needs (D)</p> Signup and view all the answers

What is the main purpose of the quality control activity?

<p>To monitor the manufacturing process at various points to ensure that the finished products meet the firm's quality standards (A)</p> Signup and view all the answers

What is the main purpose of the maintenance activity?

<p>To keep the firm's machinery and other manufacturing facilities in running order (A)</p> Signup and view all the answers

What are the characteristics of useful information as mentioned in the text?

<p>Relevance, timeliness, accuracy, completeness, summarization (C)</p> Signup and view all the answers

What should the contents of a report or document primarily do?

<p>Serve a purpose (C)</p> Signup and view all the answers

Why is timeliness considered a critical factor in determining the usefulness of information?

<p>To ensure the information is relevant (D)</p> Signup and view all the answers

What is the role of accuracy in ensuring information is useful?

<p>To be free from material errors (B)</p> Signup and view all the answers

How does irrelevancy in reports affect users according to the text?

<p>It detracts attention from the true message and may lead to incorrect decisions (C)</p> Signup and view all the answers

What is a difficult concept to quantify when considering accuracy in information?

<p>Materiality (A)</p> Signup and view all the answers

What is material error?

<p>Inaccurate information that leads to poor decisions (B)</p> Signup and view all the answers

Why might absolute accuracy be sacrificed?

<p>To obtain timely information (A)</p> Signup and view all the answers

What is a key characteristic of completeness?

<p>No essential information is missing for a decision (D)</p> Signup and view all the answers

How does summarization of information relate to managerial level?

<p>Higher-level managers need more summarized information (D)</p> Signup and view all the answers

What is feedback in an information system?

<p>Output sent back to the system as data input (D)</p> Signup and view all the answers

What is an example of how feedback can be used?

<p>To initiate the inventory ordering process (C)</p> Signup and view all the answers

Who are examples of agents in an organization?

<p>Production workers (C)</p> Signup and view all the answers

What is the main purpose of an Enterprise Resource Planning (ERP) system?

<p>Integrating key business processes (A)</p> Signup and view all the answers

What is the role of accountants in system design?

<p>Active participants (C)</p> Signup and view all the answers

What is the impact of all systems that process financial transactions on the accounting function?

<p>Impact in some way (C)</p> Signup and view all the answers

What type of information flows does an ERP system facilitate?

<p>Data sharing and information flows (C)</p> Signup and view all the answers

What is a major challenge in implementing an ERP system according to the text?

<p>Massive undertaking spanning several years (B)</p> Signup and view all the answers

What is the primary objective of the personnel function?

<p>To effectively manage the firm's employees as a valuable resource (A)</p> Signup and view all the answers

Which of the following activities is NOT part of a well-developed personnel function?

<p>Portfolio management (A)</p> Signup and view all the answers

What is the primary role of the finance function?

<p>To manage the firm's financial resources (D)</p> Signup and view all the answers

Which of the following statements about the finance function is TRUE?

<p>It seeks lucrative investments and low-cost credit lines to manage cash flow patterns (A)</p> Signup and view all the answers

What are the two important roles of the accounting function in transaction processing?

<p>Recording financial transactions and distributing transaction information (D)</p> Signup and view all the answers

Which of the following activities is NOT listed as an accounting activity that contributes directly to business operations?

<p>Financial planning (B)</p> Signup and view all the answers

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