Characteristics of Useful Information

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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?

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

What is the main purpose of the quality control activity?

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

What is the main purpose of the maintenance activity?

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

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

Relevance, timeliness, accuracy, completeness, summarization (C) Signup and view all the answers

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

Serve a purpose (C) Signup and view all the answers

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

To ensure the information is relevant (D) Signup and view all the answers

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

To be free from material errors (B) Signup and view all the answers

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

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

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

Materiality (A) Signup and view all the answers

What is material error?

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

Why might absolute accuracy be sacrificed?

To obtain timely information (A) Signup and view all the answers

What is a key characteristic of completeness?

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

How does summarization of information relate to managerial level?

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

What is feedback in an information system?

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

What is an example of how feedback can be used?

To initiate the inventory ordering process (C) Signup and view all the answers

Who are examples of agents in an organization?

Production workers (C) Signup and view all the answers

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

Integrating key business processes (A) Signup and view all the answers

What is the role of accountants in system design?

Active participants (C) Signup and view all the answers

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

Impact in some way (C) Signup and view all the answers

What type of information flows does an ERP system facilitate?

Data sharing and information flows (C) Signup and view all the answers

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

Massive undertaking spanning several years (B) Signup and view all the answers

What is the primary objective of the personnel function?

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

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

Portfolio management (A) Signup and view all the answers

What is the primary role of the finance function?

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

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

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

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

Recording financial transactions and distributing transaction information (D) Signup and view all the answers

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

Financial planning (B) Signup and view all the answers