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Questions and Answers
What is the primary function of Management Information Systems (MIS)?
What level of the organization do Decision-Support Systems (DSS) serve?
What type of decisions do Executive Support Systems (ESS) address?
What type of data do Decision-Support Systems (DSS) often bring in?
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What is the main difference between Management Information Systems (MIS) and Transaction Processing Systems (TPS)?
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Which system filters, compresses, and tracks critical data for senior managers?
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What is the main purpose of Executive Support Systems (ESS)?
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Which systems are designed to incorporate data about external events, such as new tax laws or competitors?
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What type of system supports the operational level of an organization?
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Which of the following is NOT a functional category of Transaction Processing Systems (TPS)?
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Which level of the organization is primarily served by Management Information Systems (MIS)?
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What type of system is used in hotel reservations?
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What is the purpose of Transaction Processing Systems (TPS) in an organization?
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Which level of the organization uses Management Information Systems (MIS)?
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What is the primary function of Transaction Processing Systems (TPS)?
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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?
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What would be the potential consequence of a TPS failure for a few hours in a company like UPS?
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Which of the following is an example of a system specific to a particular industry?
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What type of system supports the strategic level of an organization?
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What is the primary focus of Management Information Systems (MIS)?
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What type of system is responsible for tracking packages in a company like UPS?
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Which of the following is NOT a functional area of an organization?
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What type of system is responsible for supporting the sales management function in an organization?
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What is the relationship between Transaction Processing Systems (TPS) and Management Information Systems (MIS)?
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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
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Description
This quiz covers the role of Management Information Systems (MIS) in accounting, including their functions, dependency on transaction processing systems, and reporting capabilities.