24 Questions
What is the primary function of Management Information Systems (MIS)?
To summarize and report on a company's basic operations
What level of the organization do Decision-Support Systems (DSS) serve?
Management level
What type of decisions do Executive Support Systems (ESS) address?
Non-routine decisions requiring judgment and insight
What type of data do Decision-Support Systems (DSS) often bring in?
External data from sources like competitors and market trends
What is the main difference between Management Information Systems (MIS) and Transaction Processing Systems (TPS)?
TPS is for operational data, while MIS is for summarized data
Which system filters, compresses, and tracks critical data for senior managers?
Executive Support Systems (ESS)
What is the main purpose of Executive Support Systems (ESS)?
To help senior managers make non-routine decisions
Which systems are designed to incorporate data about external events, such as new tax laws or competitors?
Executive Support Systems (ESS)
What type of system supports the operational level of an organization?
Transaction Processing Systems (TPS)
Which of the following is NOT a functional category of Transaction Processing Systems (TPS)?
Research and Development
Which level of the organization is primarily served by Management Information Systems (MIS)?
Management level
What type of system is used in hotel reservations?
Transaction Processing Systems (TPS)
What is the purpose of Transaction Processing Systems (TPS) in an organization?
To monitor the status of internal operations and the firm’s relations with the external environment
Which level of the organization uses Management Information Systems (MIS)?
Management Level
What is the primary function of Transaction Processing Systems (TPS)?
To support daily routine transactions
What type of system is responsible for maintaining records of an organization’s income and expenses, and for producing reports such as income statements and balance sheets?
General Ledger System
What would be the potential consequence of a TPS failure for a few hours in a company like UPS?
A complete shutdown of the business
Which of the following is an example of a system specific to a particular industry?
Airline Reservation System
What type of system supports the strategic level of an organization?
Executive Support Systems (ESS)
What is the primary focus of Management Information Systems (MIS)?
Management-level functions
What type of system is responsible for tracking packages in a company like UPS?
Package Tracking System
Which of the following is NOT a functional area of an organization?
Research and Development
What type of system is responsible for supporting the sales management function in an organization?
Sales Management System
What is the relationship between Transaction Processing Systems (TPS) and Management Information Systems (MIS)?
TPS supplies data to MIS
Study Notes
Types of Information Systems
- Organizations can be divided into strategic, management, and operational levels and into four major functional areas: sales and marketing, manufacturing and production, finance and accounting, and human resources.
Four Major Types of Systems
- The four major types of information systems are:
- Executive Support Systems (ESS) at the strategic level
- Management Information Systems (MIS) and Decision-Support Systems (DSS) at the management level
- Transaction Processing Systems (TPS) at the operational level
Transaction Processing Systems (TPS)
- TPS are basic business systems that serve the operational level of the organization
- TPS perform and record daily routine transactions necessary to conduct business
- Examples of TPS include sales order entry, hotel reservation systems, payroll, employee record keeping, and shipping
- There are five functional categories of TPS: sales/marketing, manufacturing/production, finance/accounting, human resources, and other types of systems specific to a particular industry
- Within each of these major functions are sub-functions
Management Information Systems (MIS)
- MIS primarily serve the management level of the organization
- MIS provide managers with reports and often online access to the organization's current performance and historical records
- MIS are oriented almost exclusively to internal, not environmental or external, events
- MIS summarize and report on the company's basic operations
- Figure 2-6 shows a sample report from an MIS
Decision-Support Systems (DSS)
- DSS serve the management level of the organization
- DSS help managers make decisions that are unique, rapidly changing, and not easily specified in advance
- DSS address problems where the procedure for arriving at a solution may not be fully predefined in advance
- DSS use internal information from TPS and MIS, and often bring in information from external sources
Executive Support Systems (ESS)
- ESS serve the strategic level of the organization
- ESS help senior managers make decisions
- ESS address nonroutine decisions requiring judgment, evaluation, and insight
- ESS incorporate data about external events, and draw summarized information from internal MIS and DSS
This quiz covers the role of Management Information Systems (MIS) in accounting, including their functions, dependency on transaction processing systems, and reporting capabilities.
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