29 Questions
What type of decisions can be delegated to lower-level employees?
Structured decisions
Which type of decisions require subjective assessments?
Semistructured decisions
What does 'adding value' truly mean in the context of the text?
Making the value of the finished product greater than the sum of its parts
When deciding whether to write an auto insurance policy for a customer with a clean driving history, what kind of decision is being made?
Structured decision
Which of the following is NOT mentioned as a way to add value according to the text?
Increasing the quantity of components
What distinguishes semistructured decisions from structured decisions?
They are more complex
What are the two types of activities involved in providing value according to the text?
Primary and support activities
Which type of decision-making involves incomplete rules and subjective assessments?
Semistructured decisions
In the value chain, what are primary activities also known as?
Line activities
Which term is used to describe support activities in the context of the value chain?
Staff activities
What is the main goal of performing activities in the value chain as described in the text?
To enhance value creation
What characteristic of information ensures that it reduces uncertainty?
Relevance
Which characteristic of information ensures that it is free from error or bias?
Reliability
Which characteristic of information ensures that nothing important is omitted?
Completeness
Which characteristic of information ensures that it is received in time for decision-making?
Timeliness
Which characteristic of information ensures that it is presented in a manner that can be easily understood and utilized?
Understandability
Which characteristic of information ensures that it helps in predicting future events or confirming past ones?
Relevance
Which type of decision requires a great deal of subjective assessment?
Non-recurring and non-routine decisions
What type of decision relates to utilizing resources to accomplish organizational objectives?
Management control decisions
Which type of decision involves establishing organizational objectives and policies to achieve those objectives?
Strategic planning decisions
What type of decision is more likely to be engaged in by higher-level managers in an organization?
Less structured decisions
In the context of corporate strategy, what must corporations do due to limited resources?
Identify improvements likely to yield the highest return
Which decision type involves deciding whether to diversify the company into other product lines?
Strategic planning decisions
What is the main goal of the purchasing folks in the pharmaceutical company?
Balancing cost and quality
How can information technology impact an organization's value chain?
It can significantly improve efficiency and effectiveness of activities
Which term refers to the connection between an organization's value chain and the value chains of its customers, suppliers, and distributors?
Supply chain linkage
In the context of Pharmaceuticals, Inc., which part of the value chain links to its suppliers' outbound logistics?
Inbound Logistics
What role does the AIS play in linking an organization's value chain with those of its stakeholders?
It enhances communication and collaboration
Which statement best describes the relationship between Smith Supply Co. and Pharmaceuticals, Inc. based on the text?
Smith Supply Co. is a supplier to Pharmaceuticals, Inc.
Explore the impact of information technology in the pharmaceutical industry, specifically in the purchasing department. Learn how AIS (Accounting Information Systems) play a crucial role in improving efficiency and effectiveness in the value chain activities. This quiz is based on content from 'Accounting Information Systems' by Romney/Steinbart.
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