CMIS 526 FINAL STUDYGUIDE EXAM 2026/2027 |
COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | LATEST EXAM GUIDE
2026&2027
1. A retail organization replaces its manual inventory process with an integrated
information system. Which outcome best demonstrates the strategic value of the
system?
A. Employees spend less time entering duplicate inventory data.
B. The company purchases newer computers.
C. Managers receive longer reports.
D. Employees use more software applications.
Answer: A
Reducing duplicate data entry improves process efficiency and demonstrates a measurable
business benefit from the information system.
2. Which statement best describes an information system from a managerial
perspective?
A. A collection of computers connected to a network
B. A combination of people, processes, data, and technology used to support
organizational objectives
C. A database containing organizational records
D. A software application used by employees
Answer: B
An information system combines technology with people, processes, and data to support
organizational activities and decision-making.
3. A company outsources its customer-service operation to another country primarily
to reduce operating costs. Which globalization-related development does this
represent?
A. Vertical integration
B. Market segmentation
C. Global outsourcing
D. Product diversification
Answer: C
Global outsourcing occurs when an organization transfers selected business activities to an
external provider, often across national borders.
, 4. A manager wants to determine whether an information system investment will
create more value than alternative investments. What should the manager
emphasize?
A. The number of software features
B. The age of the existing computers
C. Employee opinions about technology
D. The business case and expected costs and benefits
Answer: D
A business case evaluates whether an investment is justified by comparing expected costs,
benefits, risks, and alternatives.
5. Which organizational level is most commonly associated with transaction processing
systems?
A. Operational level
B. Strategic level
C. Executive level
D. Board level
Answer: A
Transaction processing systems support routine, day-to-day operational activities such as
sales, payments, and registrations.
6. A supermarket automatically records each purchase and updates its inventory
database. Which system capability is being demonstrated?
A. Executive decision support
B. Transaction processing
C. Strategic forecasting
D. Knowledge management
Answer: B
The system captures and processes routine business transactions, which is the primary
purpose of a transaction processing system.
7. A manager receives a dashboard showing monthly sales trends and regional
performance. What type of information is most directly being provided?
A. Raw data
B. Unprocessed transactions
C. Processed information
D. Source code
Answer: C
,Information is data that has been processed and organized so that it has meaning and can
support decisions.
8. A company discovers that two departments maintain different customer addresses
for the same customer. Which information-quality problem is most evident?
A. Timeliness
B. Completeness
C. Accessibility
D. Consistency
Answer: D
Conflicting versions of the same customer information indicate a consistency problem.
9. Which characteristic makes information particularly valuable for managerial
decision-making?
A. Relevance to the decision
B. Maximum file size
C. High storage requirements
D. Complex formatting
Answer: A
Relevant information directly contributes to the decision being made and helps managers
evaluate available alternatives.
10. A company introduces an enterprise system that connects finance, purchasing,
inventory, and human resources. What is the primary advantage?
A. Each department can create completely independent data
B. Business functions can share integrated information
C. Employees no longer need procedures
D. Managers can eliminate all business risks
Answer: B
Integration allows organizational functions to share information and coordinate processes
more effectively.
11. Which statement best describes a business process?
A. A computer's operating system
B. A single employee's job description
C. A sequence of activities performed to accomplish a business objective
D. A database table
Answer: C
, A business process consists of related activities performed in a defined sequence to produce a
desired organizational outcome.
12. A loan application moves from customer submission to credit review, approval,
documentation, and funding. This is best classified as:
A. A hardware architecture
B. A data model
C. A network protocol
D. A business process
Answer: D
The activities collectively form a process that transforms a loan request into an approved and
funded transaction.
13. A company maps its order-to-cash process and discovers that employees manually
enter the same order information three times. What should management investigate
first?
A. Process redundancy and opportunities for integration
B. Employee salaries
C. Office furniture
D. Corporate branding
Answer: A
Repeated manual entry is a process inefficiency that may be reduced through integration or
automation.
14. Which activity represents business-process reengineering most clearly?
A. Replacing all employee chairs
B. Redesigning the approval process to eliminate unnecessary steps
C. Increasing the number of printed reports
D. Purchasing additional storage cabinets
Answer: B
Business-process reengineering involves fundamentally redesigning processes to achieve
significant improvements in performance.
15. A company adopts a new information system but keeps every inefficient procedure
unchanged. What is the greatest concern?
A. The system will automatically improve every process
B. The organization may automate inefficient practices
C. The company will eliminate all data
D. Employees will no longer need training
COMPLETE QUESTIONS AND ANSWERS (VERIFIED
ANSWERS) | EXAM PREP | LATEST EXAM GUIDE
2026&2027
1. A retail organization replaces its manual inventory process with an integrated
information system. Which outcome best demonstrates the strategic value of the
system?
A. Employees spend less time entering duplicate inventory data.
B. The company purchases newer computers.
C. Managers receive longer reports.
D. Employees use more software applications.
Answer: A
Reducing duplicate data entry improves process efficiency and demonstrates a measurable
business benefit from the information system.
2. Which statement best describes an information system from a managerial
perspective?
A. A collection of computers connected to a network
B. A combination of people, processes, data, and technology used to support
organizational objectives
C. A database containing organizational records
D. A software application used by employees
Answer: B
An information system combines technology with people, processes, and data to support
organizational activities and decision-making.
3. A company outsources its customer-service operation to another country primarily
to reduce operating costs. Which globalization-related development does this
represent?
A. Vertical integration
B. Market segmentation
C. Global outsourcing
D. Product diversification
Answer: C
Global outsourcing occurs when an organization transfers selected business activities to an
external provider, often across national borders.
, 4. A manager wants to determine whether an information system investment will
create more value than alternative investments. What should the manager
emphasize?
A. The number of software features
B. The age of the existing computers
C. Employee opinions about technology
D. The business case and expected costs and benefits
Answer: D
A business case evaluates whether an investment is justified by comparing expected costs,
benefits, risks, and alternatives.
5. Which organizational level is most commonly associated with transaction processing
systems?
A. Operational level
B. Strategic level
C. Executive level
D. Board level
Answer: A
Transaction processing systems support routine, day-to-day operational activities such as
sales, payments, and registrations.
6. A supermarket automatically records each purchase and updates its inventory
database. Which system capability is being demonstrated?
A. Executive decision support
B. Transaction processing
C. Strategic forecasting
D. Knowledge management
Answer: B
The system captures and processes routine business transactions, which is the primary
purpose of a transaction processing system.
7. A manager receives a dashboard showing monthly sales trends and regional
performance. What type of information is most directly being provided?
A. Raw data
B. Unprocessed transactions
C. Processed information
D. Source code
Answer: C
,Information is data that has been processed and organized so that it has meaning and can
support decisions.
8. A company discovers that two departments maintain different customer addresses
for the same customer. Which information-quality problem is most evident?
A. Timeliness
B. Completeness
C. Accessibility
D. Consistency
Answer: D
Conflicting versions of the same customer information indicate a consistency problem.
9. Which characteristic makes information particularly valuable for managerial
decision-making?
A. Relevance to the decision
B. Maximum file size
C. High storage requirements
D. Complex formatting
Answer: A
Relevant information directly contributes to the decision being made and helps managers
evaluate available alternatives.
10. A company introduces an enterprise system that connects finance, purchasing,
inventory, and human resources. What is the primary advantage?
A. Each department can create completely independent data
B. Business functions can share integrated information
C. Employees no longer need procedures
D. Managers can eliminate all business risks
Answer: B
Integration allows organizational functions to share information and coordinate processes
more effectively.
11. Which statement best describes a business process?
A. A computer's operating system
B. A single employee's job description
C. A sequence of activities performed to accomplish a business objective
D. A database table
Answer: C
, A business process consists of related activities performed in a defined sequence to produce a
desired organizational outcome.
12. A loan application moves from customer submission to credit review, approval,
documentation, and funding. This is best classified as:
A. A hardware architecture
B. A data model
C. A network protocol
D. A business process
Answer: D
The activities collectively form a process that transforms a loan request into an approved and
funded transaction.
13. A company maps its order-to-cash process and discovers that employees manually
enter the same order information three times. What should management investigate
first?
A. Process redundancy and opportunities for integration
B. Employee salaries
C. Office furniture
D. Corporate branding
Answer: A
Repeated manual entry is a process inefficiency that may be reduced through integration or
automation.
14. Which activity represents business-process reengineering most clearly?
A. Replacing all employee chairs
B. Redesigning the approval process to eliminate unnecessary steps
C. Increasing the number of printed reports
D. Purchasing additional storage cabinets
Answer: B
Business-process reengineering involves fundamentally redesigning processes to achieve
significant improvements in performance.
15. A company adopts a new information system but keeps every inefficient procedure
unchanged. What is the greatest concern?
A. The system will automatically improve every process
B. The organization may automate inefficient practices
C. The company will eliminate all data
D. Employees will no longer need training
