Test Bank for Experiencing MIS, Fifth Canadian Edition

Experiencing MIS, Canadian Edition, 5e (Kroenke) Chapter 2 Business Processes and Decision Making 1) Business processes are synonymous with business systems. Answer: TRUE Diff: 1 Type: TF Page Ref: 25 Study Question: Q2 Skill: RECALL 2) You should always ask yourself “how can I use my time in school to enhance those skills I already have?” Answer: TRUE Diff: 2 Type: TF Page Ref: 43 Study Question: Q10 Skill: RECALL 3) The inventory management process includes placing orders and receiving goods into inventory. Answer: TRUE Diff: 1 Type: TF Page Ref: 26 Study Question: Q2 Skill: APPLIED 4) In the payment process, the invoice is compared to the purchase order. Answer: TRUE Diff: 3 Type: TF Page Ref: 26 Study Question: Q2 Skill: APPLIED 5) A copy of the purchase order is sent to the customer. Answer: FALSE Diff: 2 Type: TF Page Ref: 26 Study Question: Q2 Skill: RECALL 6) A business process consists of activities, resources, facilities, and information. Answer: TRUE Diff: 1 Type: TF Page Ref: 26 Study Question: Q3 Skill: RECALL 7) Any item of value can be considered to be a potential resource for a business process. Answer: TRUE Diff: 1 Type: TF Page Ref: 27 Study Question: Q3 Skill: RECALL 1 Copyright © 2019 Pearson Canada, Inc. 8) Activities transform resources and data into different kinds of resources and data. Answer: FALSE Diff: 2 Type: TF Page Ref: 27 Study Question: Q3 Skill: RECALL 9) An inventory database would be considered to be an example of a facility in the inventory management process. Answer: TRUE Diff: 2 Type: TF Page Ref: 27 Study Question: Q3 Skill: RECALL 10) The fact that it rained 1.2 inches today is an example of information. Answer: FALSE Diff: 2 Type: TF Page Ref: 27 Study Question: Q4 Skill: APPLIED 11) The fact that the sun rose this morning at 6:25 a.m. is an example of data. Answer: TRUE Diff: 2 Type: TF Page Ref: 27 Study Question: Q4 Skill: APPLIED 12) Data is another word for information. Answer: FALSE Diff: 2 Type: TF Page Ref: 27 Study Question: Q4 Skill: APPLIED 13) When data is presented with a meaningful context, it becomes information. Answer: TRUE Diff: 1 Type: TF Page Ref: 27 Study Question: Q4 Skill: RECALL 14) The information that is the output of one process can be viewed as a data input to another process. Answer: TRUE Diff: 2 Type: TF Page Ref: 27 Study Question: Q4 Skill: APPLIED 2 Copyright © 2019 Pearson Canada, Inc. 15) Each activity within a business process must use one, and only one, information system. Answer: FALSE Diff: 2 Type: TF Page Ref: 31 Study Question: Q6 Skill: RECALL 16) It is good business practice for a payment activity to have a single person assigned to approve payments and generate checks. Answer: FALSE Diff: 3 Type: TF Page Ref: 33 Study Question: Q6 Skill: RECALL 17) Strategic decisions involve long term actions whose consequences may not be realized for years. Answer: TRUE Diff: 2 Type: TF Page Ref: 35 Study Question: Q7 Skill: RECALL 18) A structured decision involves an understood and accepted method for making the decision. Answer: TRUE Diff: 2 Type: TF Page Ref: 35 Study Question: Q7 Skill: RECALL 19) A transaction processing system helps managers allocate and utilize resources. Answer: FALSE Diff: 2 Type: TF Page Ref: 34 Study Question: Q7 Skill: RECALL 20) During intelligence gathering, the decision makers determine what is to be decided, what the criteria for the decision will be, and what data are available. Answer: TRUE Diff: 3 Type: TF Page Ref: 36 Study Question: Q7 Skill: RECALL 21) While weather is an unstructured phenomenon, weather forecasting is an example of structured decision making. Answer: TRUE Diff: 3 Type: TF Page Ref: 35 Study Question: Q7 Skill: APPLIED 3 Copyright © 2019 Pearson Canada, Inc. 22) The quality of your thinking is a large part of the quality of the information system. Answer: TRUE Diff: 2 Type: TF Page Ref: 37 Study Question: Q10 Skill: RECALL 23) The review step may lead to another decision and another iteration of the decision making process. Answer: TRUE Diff: 2 Type: TF Page Ref: 36 Study Question: Q7 Skill: RECALL 24) Your mind and your thinking are not merely a component of the information systems you use; they are the most important component. Answer: TRUE Diff: 1 Type: TF Page Ref: 37 Study Question: Q10 Skill: RECALL 25) Information needs to be just barely sufficient for the purpose for which it is generated. Answer: TRUE Diff: 2 Type: TF Page Ref: 29 Study Question: Q4 Skill: RECALL 26) For information to be worth its cost, there must be an appropriate relationship between the cost of information and its value. Answer: TRUE Diff: 2 Type: TF Page Ref: 30 Study Question: Q4 Skill: RECALL 27) An activity is considered to be automated when it is characterized by people following procedures. Answer: FALSE Diff: 1 Type: TF Page Ref: 31 Study Question: Q6 Skill: APPLIED 28) In an information systems framework, software and procedure components are both sets of instructions. Answer: TRUE Diff: 1 Type: TF Page Ref: 31 Study Question: Q6 Skill: RECALL 4 Copyright © 2019 Pearson Canada, Inc. 29) In the five-component framework of information systems, the actors are hardware and people. Answer: TRUE Diff: 2 Type: TF Page Ref: 31 Study Question: Q6 Skill: RECALL 30) Automation moves work from the software component to the hardware component. Answer: FALSE Diff: 2 Type: TF Page Ref: 32 Study Question: Q6 Skill: RECALL 31) A business process is A) a network of activities used to accomplish business goals. B) a set of required steps in a production process. C) a network of activities, resources, facilities, and information that interact to achieve some business function. D) a set of activities in a value chain. E) a set of activities in a supply chain. Answer: C Diff: 2 Type: MC Page Ref: 25 Study Question: Q2 Skill: RECALL 32) An information system must produce information that is A) worth its cost, relevant, barely sufficient, and accurate. B) relevant, timely, all encompassing, and worth its cost. C) just barely sufficient, only a year old, and worth its cost. D) timely and accurate. E) accurate and worth its cost. Answer: A Diff: 3 Type: MC Page Ref: 29 Study Question: Q4 Skill: RECALL 33) Which of the following are characteristics of good information? A) Worth its cost, timely, relevant, all encompassing B) Timely, expensive but complete, relevant C) Relevant, not many important errors, worth its cost D) Timely, expensive but complete, accurate E) Timely, relevant, worth its cost, barely sufficient, accurate Answer: E Diff: 3 Type: MC Page Ref: 29 Study Question: Q4 Skill: APPLIED 5 Copyright © 2019 Pearson Canada, Inc. 34) Relevant information refers to information that is A) worth the value paid to generate it. B) useful to both the context and the subject at hand. C) good for the purpose for which it is generated. D) produced in time for its intended use. E) correct and complete. Answer: B Diff: 2 Type: MC Page Ref: 29 Study Question: Q4 Skill: RECALL 35) Just barely sufficient information refers to information that is A) correct and complete. B) produced in time for its intended use. C) good for the purpose for which it is generated. D) not useful to the decision being made. E) useful to both the context and the subject at hand. Answer: C Diff: 2 Type: MC Page Ref: 29 Study Question: Q4 Skill: RECALL 36) “Worth its cost” refers to information A) that is produced in time for its intended use. B) that is good for the purpose for which it is generated. C) that is collected in a low-cost manner. D) that has an appropriate relationship between its cost and its value. E) that is useful to both the context and the subject at hand. Answer: D Diff: 2 Type: MC Page Ref: 30 Study Question: Q4 Skill: RECALL 37) Operational decisions refer to A) the control of resources and activities over a time period of less than one month. B) day-to-day activities. C) an understood and accepted method for making decisions. D) the allocation and utilization of resources. E) broader-scope, organizational issues. Answer: B Diff: 2 Type: MC Page Ref: 34 Study Question: Q7 Skill: RECALL 6 Copyright © 2019 Pearson Canada, Inc. 38) Managerial decisions refer to A) day-to-day activities. B) broader-scope, organizational issues. C) an understood and accepted method for making decisions. D) the allocation and utilization of resources. E) the control of resources and activities. Answer: D Diff: 2 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 39) Strategic decision refer to A) the allocation and utilization of resources. B) broader-scope, organizational issues. C) day-to-day activities. D) transactions details. E) an understood and accepted method for making decisions. Answer: B Diff: 2 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 40) A Transaction Processing System supports A) transactional decisions. B) operational decisions. C) strategic decisions. D) executive decisions. E) managerial decisions. Answer: B Diff: 1 Type: MC Page Ref: 34 Study Question: Q7 Skill: RECALL 41) A Management Information System supports A) operational decisions. B) managerial decisions. C) strategic decisions. D) unstructured decisions. E) executive decisions. Answer: B Diff: 1 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 7 Copyright © 2019 Pearson Canada, Inc. 42) Operational decisions involve A) long term actions. B) short term actions. C) allocation of resources. D) product line development. E) staffing quotas. Answer: B Diff: 1 Type: MC Page Ref: 34 Study Question: Q7 Skill: RECALL 43) An understood and accepted method for making decisions is used to make A) managerial decisions. B) operational decisions. C) strategic decisions. D) executive decisions. E) structured decisions. Answer: E Diff: 3 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 44) An unstructured decision making process A) is one for which there is an agreed upon decision-making method. B) is one for which there is no documentation required. C) is one for which there are no structured steps. D) is one for which there are no formal procedures. E) is one for which there is no agreed-on decision-making method. Answer: E Diff: 3 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 45) The step in a decision making process where decision markers determine what is to be decided, what the criteria for the decision will be, and what data are available is called A) alternatives formulation. B) decision analysis. C) intelligence gathering. D) the review step. E) the choice step. Answer: C Diff: 2 Type: MC Page Ref: 36 Study Question: Q7 Skill: RECALL 8 Copyright © 2019 Pearson Canada, Inc. 46) The stage in a decision making process where decision makers lay out various alternatives is called A) decision analysis. B) intelligence gathering. C) alternatives formulation. D) the choice step. E) the review step. Answer: C Diff: 2 Type: MC Page Ref: 36 Study Question: Q7 Skill: RECALL 47) The stage in a decision making process which a decision maker analyzed the alternatives and selected one is called A) alternatives formulation. B) the choice step. C) intelligence gathering. D) decision step. E) the review step. Answer: B Diff: 2 Type: MC Page Ref: 36 Study Question: Q7 Skill: RECALL 48) An activity can be defined as A) the carrying out of a business procedure. B) a series of steps in a business process. C) an action that supports a business strategy. D) transforming resources and information of one type into resources and information of another type. E) action performed by an actor. Answer: D Diff: 3 Type: MC Page Ref: 26 Study Question: Q3 Skill: RECALL 49) Items of value are referred to as A) money. B) valuables. C) resources. D) facilities. E) equipment. Answer: C Diff: 2 Type: MC Page Ref: 26 Study Question: Q3 Skill: RECALL 9 Copyright © 2019 Pearson Canada, Inc. 50) The HELM system improves efficiency by eliminating A) computers aboard tugboats. B) multiple dispatcher log sheets. C) multiple data entries for each job. D) accurate paper work. E) the large number of people involved in completing a job. Answer: C Diff: 1 Type: MC Page Ref: 37 Study Question: Q10 Skill: APPLIED 51) Knowledge derived from data can be described as A) wisdom. B) information. C) knowledge. D) data. E) context. Answer: B Diff: 3 Type: MC Page Ref: 27 Study Question: Q4 Skill: RECALL 52) Recorded facts or figures is (are) A) context. B) information. C) data. D) knowledge. E) processed information. Answer: C Diff: 2 Type: MC Page Ref: 27 Study Question: Q4 Skill: RECALL 53) Data presented in a meaningful context can be described as A) processed information. B) knowledge. C) information. D) processed knowledge. E) processed data. Answer: C Diff: 2 Type: MC Page Ref: 28 Study Question: Q4 Skill: RECALL 10 Copyright © 2019 Pearson Canada, Inc. 54) Which of the following is arguably the most important component of an Information System? A) Software B) Hardware C) Processes D) Information E) People Answer: E Diff: 3 Type: MC Page Ref: 31 Study Question: Q6 Skill: APPLIED 55) The review step A) is when the organization makes a decision. B) is when the organization makes a decision and may lead to another decision. C) may lead to another decision. D) is when the organization reviews the results of the decision. E) is when the organization reviews the results of the decision and may lead to another decision. Answer: E Diff: 2 Type: MC Page Ref: 36 Study Question: Q7 Skill: APPLIED 56) Which of the following is a structured decision? A) Fortune telling B) Performance appraisals C) Stock marketing forecasting D) Predicting the Super Bowl winner E) Weather forecasting Answer: E Diff: 3 Type: MC Page Ref: 35 Study Question: Q7 Skill: APPLIED 57) Which of the following is an unstructured decision? A) Allocating furniture and equipment to employees B) Weather forecasting C) Determining the future book value of assets D) Stock marketing forecasting E) Airline pricing Answer: D Diff: 3 Type: MC Page Ref: 35 Study Question: Q7 Skill: APPLIED 11 Copyright © 2019 Pearson Canada, Inc. 58) Which of the following is a managerial decision? A) Which invoices should be paid today? B) Determining next year’s IT budget C) Should we extend credit to a customer? D) Determining how many daily transactions have occurred in a specified period E) Should our firm acquire a competing firm? Answer: B Diff: 3 Type: MC Page Ref: 35 Study Question: Q7 Skill: APPLIED 59) Which of the following is an operational decision? A) Determining next year’s IT budget B) Should we extend credit to a customer? C) What are our production goals for the next three months? D) Which invoices should be paid today? E) Should our firm acquire a competing firm? Answer: D Diff: 2 Type: MC Page Ref: 34 Study Question: Q7 Skill: RECALL 60) Which of the following is a strategic decision? A) Should we extend credit to a customer? B) Determining next year’s IT budget C) What wage should we pay a particular employee? D) Should our firm acquire a competing firm? E) Which invoices should be paid today? Answer: D Diff: 2 Type: MC Page Ref: 35 Study Question: Q7 Skill: RECALL 61) Which of the following is most useful to a company? A) Knowledge B) Observations C) Decisions D) Information E) Data Answer: A Diff: 3 Type: MC Page Ref: 38 Study Question: Q8 Skill: APPLIED 12 Copyright © 2019 Pearson Canada, Inc. 62) The average wage for a factory worker is an example of (a) A) data. B) business process. C) knowledge. D) strategy. E) decision. Answer: C Diff: 3 Type: MC Page Ref: 27 Study Question: Q4 Skill: APPLIED 63) The statement that Jeff Parks earns less than half the average hourly wage of the Garden Department is A) policy. B) strategy. C) data. D) information. E) decision. Answer: D Diff: 3 Type: MC Page Ref: 27 Study Question: Q4 Skill: APPLIED 64) Which systems are typically used during the alternatives formulation step? A) Word processors B) Digital imaging systems C) Presentation software D) Statistics packages E) Collaborative systems Answer: E Diff: 3 Type: MC Page Ref: 36 Study Question: Q7 Skill: APPLIED 65) Which systems are typically used to analyze data and information during the choice step? A) Word processing packages B) Financial modelling tools C) Databases D) Digital imaging packages E) Presentation software Answer: B Diff: 3 Type: MC Page Ref: 36 Study Question: Q7 Skill: APPLIED 13 Copyright © 2019 Pearson Canada, Inc. 66) Customer numbers and their names would be an example of the ________ component of an order management information system. A) software B) information C) procedure D) hardware E) people Answer: B Diff: 2 Type: MC Page Ref: 27 Study Question: Q3 Skill: RECALL 67) Business systems are sometimes referred to as business A) networks. B) models. C) channels. D) processes. E) webs. Answer: D Diff: 2 Type: MC Page Ref: 26 Study Question: Q2 Skill: RECALL 68) A business process is a network of information, resources, facilities, and A) hardware. B) activities. C) systems. D) data. E) knowledge. Answer: B Diff: 2 Type: MC Page Ref: 26 Study Question: Q3 Skill: RECALL 69) In the inventory management process, quality inspection would be viewed as a(n) A) activity. B) information output. C) data input. D) resource. E) facility. Answer: A Diff: 2 Type: MC Page Ref: 26 Study Question: Q3 Skill: APPLIED 14 Copyright © 2019 Pearson Canada, Inc. 70) An activity can be ________ or ________ and sometimes blended, depending on how the procedures are executed. A) external, internal B) manual, automated C) internal, automated D) automated, integrated E) integrated, manual Answer: B Diff: 2 Type: MC Page Ref: 31 Study Question: Q6 Skill: RECALL 71) In an automated activity the computer hardware receives its instructions from (the) A) version control program. B) network protocols. C) people. D) software. E) Web services. Answer: D Diff: 2 Type: MC Page Ref: 26 Study Question: Q3 Skill: RECALL 72) Because they have input into the inventory management process, both suppliers and customers are viewed as A) information outputs. B) data inputs C) resources. D) facilities. E) activities. Answer: C Diff: 3 Type: MC Page Ref: 27 Study Question: Q3 Skill: RECALL 73) The truck that delivers the orders to the receiving and stocking activity would be viewed in the inventory management process as a(n) A) facility. B) information output. C) activity. D) resource. E) data input. Answer: A Diff: 2 Type: MC Page Ref: 27 Study Question: Q3 Skill: RECALL 15 Copyright © 2019 Pearson Canada, Inc. 74) Inventories, databases, factories, and equipment are all examples of A) resources. B) information. C) transactions. D) facilities. E) activities. Answer: D Diff: 2 Type: MC Page Ref: 27 Study Question: Q3 Skill: RECALL 75) The on-time performance of all your vendors for a specific item would be an example of A) inventory. B) data. C) communication. D) information. E) resources. Answer: D Diff: 2 Type: MC Page Ref: 27 Study Question: Q4 Skill: APPLIED 76) For General Motors, the quantity of tire rims received would be an example of A) communication. B) knowledge. C) data. D) information. E) resources. Answer: C Diff: 2 Type: MC Page Ref: 27 Study Question: Q4 Skill: APPLIED 77) In an information system, the software and ________ components are both sets of instructions. A) data B) software C) people D) procedure E) hardware Answer: D Diff: 2 Type: MC Page Ref: 31 Study Question: Q6 Skill: RECALL 16 Copyright © 2019 Pearson Canada, Inc. 78) Business processes generate information by combining key data in a specific A) context. B) activity. C) procedure. D) relevance. E) process. Answer: A Diff: 2 Type: MC Page Ref: 31 Study Question: Q4 Skill: APPLIED 79) In an information system the people and ________ components are considered to be actors since they can take specific actions. A) hardware B) data C) people D) procedure E) software Answer: A Diff: 2 Type: MC Page Ref: 31 Study Question: Q6 Skill: RECALL 80) ________ would be one of the factors that lead to designing fully automated systems. A) High skill employee positions B) Tasks that require significant employee data inputs C) Low turnover employee positions D) High turnover employee positions E) Tasks that require significant human judgement Answer: D Diff: 3 Type: MC Page Ref: 32 Study Question: Q6 Skill: RECALL 81) ________ is (are) instructions for hardware and ________ is (are) instructions for people. A) Procedures, software B) Software, processes C) Data, processes D) Machine instructions, user manuals E) Software, procedures Answer: E Diff: 2 Type: MC Page Ref: 31 Study Question: Q6 Skill: RECALL 17 Copyright © 2019 Pearson Canada, Inc. 82) If you do not know what to do with the information that your IS produces (even if it is a perfectly functioning IS) A) you likely started with faulty data. B) you probably have the wrong communications software. C) ask a techie for a translation. D) you can still make decisions based on that information. E) you are wasting your time and money. Answer: E Diff: 3 Type: MC Page Ref: 38 Study Question: Q10 Skill: APPLIED 83) In an information systems framework, ________ is the bridge between the computer side on the left and the human side on the right. A) hardware B) software C) procedure D) data Answer: D Diff: 2 Type: MC Page Ref: 31 Study Question: Q6 Skill: APPLIED 84) When activities formerly done by people following procedures are moved to computers that perform the work by following instructions in software, the activities are said to be A) outsourced. B) automated. C) documented. D) systematized. Answer: B Diff: 2 Type: MC Page Ref: 32 Study Question: Q6 Skill: APPLIED 85) Automation of a process activity consists of moving work from the ________ of the symmetrical five-component framework. A) software side to the human side B) data side to the procedure side C) human side to the computer side D) software side to the hardware side Answer: C Diff: 2 Type: MC Page Ref: 32 Study Question: Q6 Skill: APPLIED 18 Copyright © 2019 Pearson Canada, Inc. 86) John’s height is 6 feet 3 inches. This is a type of A) data. B) information. C) procedure. D) content. Answer: A Diff: 1 Type: MC Page Ref: 27 Study Question: Q4 Skill: RECALL 87) Which of the following refers to information that is based on correct and complete data and has been processed correctly, as expected? A) relevant information B) measurable information C) accurate information D) timely information Answer: C Diff: 2 Type: MC Page Ref: 29 Study Question: Q4 Skill: RECALL 88) Which of the following information is good information for the CEO of a call centre? A) Hourly variance reports of performance parameters in each queue B) Daily report of calls attended by each employee C) Real-time information about the average time spent per call by employees D) Department-level averages of revenue generation figures Answer: D Diff: 2 Type: MC Page Ref: 29 Study Question: Q4 Skill: APPLIED 89) ________ information is information that directly pertains both to the context and to the subject. A) Timely B) Relevant C) Measurable D) Expensive Answer: B Diff: 1 Type: MC Page Ref: 29 Study Question: Q4 Skill: RECALL 19 Copyright © 2019 Pearson Canada, Inc. 90) Which of the following statements is true regarding the characteristics of good information? A) Information needs to be more than just barely sufficient for the purpose for which it is generated. B) Information must hold an appropriate relationship between its cost and value. C) Accurate information can be based on incomplete data. D) Good information is just recorded facts and figures. Answer: B Diff: 2 Type: MC Page Ref: 29 Study Question: Q4 Skill: APPLIED 91) Business Process Modelling Notation provides ________ graphical elements that can be used to document a process. Answer: four Diff: 2 Type: SA Page Ref: 27 Study Question: Q3 Skill: RECALL 92) Human resources personnel say that ________ is one of the most effective ways of finding a job. Answer: networking Diff: 2 Type: SA Page Ref: 33 Study Question: Q10 Skill: RECALL 93) A ________ lists the items ordered and the quantity requested of each item. Answer: purchase order Diff: 2 Type: SA Page Ref: 26 Study Question: Q2 Skill: RECALL 94) The ________ process works to balance the demands from customers with the inventory purchased from suppliers. Answer: inventory management Diff: 2 Type: SA Page Ref: 26 Study Question: Q2 Skill: RECALL 95) When stock in inventory hits a critical point, it is called the ________ point. Answer: reorder Diff: 2 Type: SA Page Ref: 26 Study Question: Q2 Skill: RECALL 20 Copyright © 2019 Pearson Canada, Inc. 96) The most common definition of information is that it is derived from data, where data is defined as ________. Answer: recorded facts Diff: 2 Type: SA Page Ref: 27 Study Question: Q4 Skill: RECALL 97) Good information is based on ________ and correct data. Answer: complete Diff: 2 Type: SA Page Ref: 29 Study Question: Q4 Skill: RECALL 98) ________ information is produced in time for its intended use. Answer: Timely Diff: 2 Type: SA Page Ref: 30 Study Question: Q4 Skill: RECALL 99) Information should be ________ to both the context and the subject. Answer: relevant Diff: 2 Type: SA Page Ref: 30 Study Question: Q4 Skill: RECALL 100) For information to be ________ there must be an appropriate relationship between the cost of information and its value. Answer: worth its cost Diff: 2 Type: SA Page Ref: 30 Study Question: Q4 Skill: RECALL 101) Software and procedure components are both sets of ________. Answer: instructions Diff: 2 Type: SA Page Ref: 32 Study Question: Q6 Skill: RECALL 102) ________ decisions concern the allocation and utilization of resources. Answer: Managerial Diff: 2 Type: SA Page Ref: 35 Study Question: Q7 Skill: RECALL 21 Copyright © 2019 Pearson Canada, Inc. 103) An employee’s name and number would be an example of ________. Answer: data Diff: 2 Type: SA Page Ref: 29 Study Question: Q4 Skill: RECALL 104) The average compensation for sales agents in a company would be an example of ________. Answer: information Diff: 2 Type: SA Page Ref: 29 Study Question: Q4 Skill: RECALL 105) ________ are raw, unprocessed facts such as inventory levels. Answer: Data Diff: 2 Type: SA Page Ref: 29 Study Question: Q4 Skill: RECALL 106) ________ is the process of moving human work to the computer side of the information system. Answer: Automation Diff: 2 Type: SA Page Ref: 32 Study Question: Q6 Skill: RECALL 107) Data becomes information when it has a(n) ________. Answer: context Diff: 2 Type: SA Page Ref: 28 Study Question: Q4 Skill: RECALL 108) The fact that oil costs $74.25 a barrel is an example of ________. Answer: data Diff: 2 Type: SA Page Ref: 28 Study Question: Q4 Skill: APPLIED 109) ________ is the bridge between the human and computer components of an information system. Answer: Data Diff: 2 Type: SA Page Ref: 31 Study Question: Q4 Skill: RECALL 22 Copyright © 2019 Pearson Canada, Inc. 110) The way in which you run a program such as a spreadsheet program is called a(n) ________. Answer: procedure Diff: 3 Type: SA Page Ref: 32 Study Question: Q6 Skill: APPLIED 111) Instructions for how a computer should perform specific tasks is (are) called ________. Answer: software Diff: 2 Type: SA Page Ref: 32 Study Question: Q6 Skill: RECALL 112) From a business process view, order placement in an inventory management process would be a(n) ________. Answer: activity Diff: 3 Type: SA Page Ref: 26 Study Question: Q2 Skill: APPLIED 113) A customer acts as a(n) ________ in the inventory management process. Answer: resource Diff: 3 Type: SA Page Ref: 26 Study Question: Q3 Skill: RECALL 114) A network of activities, resources, facilities, and information that interact to achieve some business function is a(n) ________. Answer: business process Diff: 2 Type: SA Page Ref: 25 Study Question: Q2 Skill: RECALL 115) From a business process viewpoint, a warehouse that stores inventory would be a(n) ________. Answer: facility Diff: 2 Type: SA Page Ref: 27 Study Question: Q3 Skill: RECALL 116) The payment ________ transforms invoice information into payment information. Answer: activity Diff: 3 Type: SA Page Ref: 26 Study Question: Q3 Skill: APPLIED 23 Copyright © 2019 Pearson Canada, Inc. 117) An example of a(n) ________ payment activity is seen when an accounts payable clerk receives and checks the accuracy of invoices against the purchase orders before issuing a payment. Answer: manual Diff: 2 Type: SA Page Ref: 34 Study Question: Q6 Skill: RECALL 118) Provide an example of a managerial decision. Answer: Any decisions that involve the allocation and utilization of resources. Typical managerial decisions are: How much should we budget for computer hardware and programs for department A next year? How many engineers should we assign to project B? Diff: 3 Type: ES Page Ref: 34 Study Question: Q7 Skill: APPLIED 119) Provide an example of an operational decision. Answer: Operational decisions concern day-to-day activities. Typical operational decisions are: How many widgets should we order from vendor A? Should we extend credit to vendor B? Which invoices should we pay today? Diff: 3 Type: ES Page Ref: 35 Study Question: Q7 Skill: APPLIED 120) Provide an example of a strategic decision. Answer: Strategic decisions concern broader-scope, organizational issues. Typical decisions at the strategic levels are: Should we start a new product line? Should we open a centralized warehouse in Calgary? Diff: 3 Type: ES Page Ref: 35 Study Question: Q7 Skill: APPLIED 121) Provide an example of an unstructured decision. Answer: An unstructured decision process is one for which there is no agreed-on decisionmaking method. Predicting the future direction of the economy or the stock market is a famous example. Diff: 3 Type: ES Page Ref: 35 Study Question: Q7 Skill: APPLIED 122) Provide an example of a structured decision. Answer: A structured decision is one for which there is an understood and accepted method for making the decision. A formula for computing the reorder quantity of an item in inventory is an example of a structured decision process. Diff: 3 Type: ES Page Ref: 35 Study Question: Q7 Skill: APPLIED 24 Copyright © 2019 Pearson Canada, Inc. 123) Describe the types of systems used during the intelligence gathering step. Answer: During intelligence gathering, email and video conferences facilitate communication among the decision makers. Also, during the first phase, decision makers use query and reporting systems, as well as other types of data analysis applications to obtain relevant data. Diff: 3 Type: ES Page Ref: 36 Study Question: Q7 Skill: RECALL 124) Describe the types of systems used during the choice step. Answer: During the choice step, analysis applications such as spreadsheets and financial and other modelling applications help decision makers to analyze alternatives. Diff: 3 Type: ES Page Ref: 36 Study Question: Q7 Skill: RECALL 125) Describe the types of systems used during the implementation step. Answer: The implementation stage involves the use of communications applications, and all types of information systems can be used during review. Diff: 3 Type: ES Page Ref: 36 Study Question: Q7 Skill: RECALL 126) What does a transaction processing system support? Answer: A transaction processing system supports operational decisions. Diff: 2 Type: ES Page Ref: 34 Study Question: Q7 Skill: RECALL 127) Describe the types of systems used during the review step. Answer: During the review step, communications applications, analysis applications such as spreadsheets and financial and query and reporting systems help decision makers to analyze alternatives. Diff: 2 Type: ES Page Ref: 35 Study Question: Q7 Skill: RECALL 128) What is meant by a business process? Give an example. Answer: A business process is defined as being a network of activities, resources, facilities, and information that interact to achieve some business function. Sometimes they are also referred to as business systems. The text describes an example of the inventory management process which starts with purchasing activities and ends with the payment activity. Other common processes might include the sales order management process and the employee recruiting process. Diff: 2 Type: ES Page Ref: 26 Study Question: Q2 Skill: RECALL 25 Copyright © 2019 Pearson Canada, Inc. 129) What is data and how is it different from information? Answer: Data are simply the raw recorded facts and figures. Data is one of the five basic components of an information system. The system turns data into information by classifying, summarizing, sorting it and giving it a meaningful context. Diff: 3 Type: ES Page Ref: 27 Study Question: Q4 Skill: APPLIED 130) What are the components of a business process? Give examples of each. Answer: The components of a business process include activities, resources, facilities, and information. Activities transform resources and information from one type into another. This happens when a clerk checks a customer credit rating before entering in a sales order for that customer. Resources are items of interest to the process. They interact with the process but are not under direct control of the organization. These could be customers and vendors. Facilities include databases, inventories, factories and equipment. Information is what activities use to determine how to transform the inputs they receive into outputs they produce. Diff: 3 Type: ES Page Ref: 30 Study Question: Q3 Skill: APPLIED 131) Explain data with an example. Answer: Data is defined as recorded facts or figures. Information is knowledge derived from data. The facts that an employee of an organization earns $17.50 per hour and that another employee of the same organization earns $25.00 per hour are examples of data. Diff: 3 Type: ES Page Ref: 27 Study Question: Q4 Skill: APPLIED 132) Describe relevant data. Explain the importance of relevant data in an organizational context. Answer: Relevant data is data that directly pertains to both the context and the subject. Considering context, a CEO needs data that is summarized to an appropriate level for his or her job. A list of the hourly wage of every employee in the company is unlikely to be useful. More likely, the CEO needs average wage information by department or division. A list of all employee wages is irrelevant in this context. Data should also be relevant to the subject at hand. If data about short-term interest rates is required to find a possible line of credit, then a report that shows 15-year mortgage interest rates is irrelevant. Diff: 3 Type: ES Page Ref: 29 Study Question: Q4 Skill: APPLIED 26 Copyright © 2019 Pearson Canada, Inc. 133) Why is it important for data to be just barely sufficient? Answer: Data needs to be sufficient for the purpose for which it is generated, but just barely so. People are inundated with data; one of the critical decisions that people make each day is what data to ignore. The higher one rises into management, the more data one will be given, and because there is only so much time, the more data one will need to ignore. So data should be sufficient, but just barely. Diff: 3 Type: ES Page Ref: 29 Study Question: Q4 Skill: APPLIED 27 Copyright © 2019 Pearson Canada, Inc.