AIS Exam 1 Study Guide | questions and answers 100% verified

AIS Exam 1 Study Guide | questions and answers 100% verified Which of the following statements is (are) true? (Check all that apply.) A. Information costs and benefits can be difficult to quantify. B. As a rule, users make better decisions as the quantity and quality of information decreases. C. The smaller the organization and the less complicated the system, the more difficult it is to achieve goal congruence. D. There are limits to the amount of information the human mind can absorb and process. E. Most systems are composed of smaller subsystems, each designed to achieve one or more organizational goals, which support a larger system. - A. Information costs and benefits can be difficult to quantify. D. There are limits to the amount of information the human mind can absorb and process. E. Most systems are composed of smaller subsystems, each designed to achieve one or more organizational goals, which support a larger system. Which of the following statements is (are) true? (Check all that apply.) A. Goal conflict occurs when a subsystem achieves its goals while contributing to the organization's overall goal. B. The value of information is the cost of producing it minus the benefit produced by the information. C. Benefits of information include reduced uncertainty, improved decisions, and improved ability to plan and schedule activities. D. Information system designers use information technology to help decision makers more effectively filter and condense information. E. Changes in a subsystem can usually be made without considering the effect on other subsystems. - C. Benefits of information include reduced uncertainty, improved decisions, and improved ability to plan and schedule activities. D. Information system designers use information technology to help decision makers more effectively filter and condense information. Which of the following statements is (are) true? (Check all that apply.) A. It is difficult to determine the value of information before it has been produced and utilized. B. Goal congruence occurs when a subsystem's goals are inconsistent with the goals of another subsystem or with the system as a whole. C. Businesses need to collect data about activities that take place, the resources affected by the activities, and the people who participate in the activity. D. Information is facts that are collected, recorded, stored, and processed by an information system. E. A system is a set of two or more interrelated components that interact to achieve a goal. - A. It is difficult to determine the value of information before it has been produced and utilized. C. Businesses need to collect data about activities that take place, the resources affected by the activities, and the people who participate in the activity. E. A system is a set of two or more interrelated components that interact to achieve a goal. Data is most useful when ______. (Check all that apply.) A. it increases uncertainty. B. it is in machine-readable format. C. its access is limited to a single person. D. it lacks clarity. - B. it is in machine-readable format. Which of the following are characteristics of useful information? (Check all that apply.) A. Biased B. Reputable C. Accurate D. Encrypted - B. Reputable C. Accurate In which business cycle are goods shipped to a customer? A. Production cycle B. Expenditure cycle C. Payroll cycle D. Revenue cycle - D. Revenue cycle A set of related activities that help accomplish a specific organizational goal is called a(n): A. Key decision B. Business process C. Information need D. Transaction - B. Business process Most organizations engage in a small number of a pair of activities that happen many times. These are called: A. Paired transaction exchanges B. Conflict-congruence exchanges C. Revenue-expenditure exchanges D. Give-get exchanges - D. Give-get exchanges Receiving and storing inventory is an activity in which transaction cycle? A. Financing B. Production C. Revenue D. Expenditure - D. Expenditure Which of the following statements is (are) true? (Check all that apply.) A. In the conversion cycle, companies convert company shares to cash by selling ownership shares to investors. B. In most cycles, companies repeatedly process a few related transactions, such as buying or selling goods. C. A transaction is an agreement between two entities to exchange goods or services. D. All organizations need information in order to make effective decisions. - B. In most cycles, companies repeatedly process a few related transactions, such as buying or selling goods. C. A transaction is an agreement between two entities to exchange goods or services. D. All organizations need information in order to make effective decisions. An AIS is composed of people, procedures and instructions, data, software, technology infrastructure, and controls. These six components enable an AIS to fulfill which of the following important business functions? (Check all that apply.) A. Hire the best people available to manage the organization B. Provide the controls needed to safeguard an organization's assets and data C. Develop the procedures and instructions needed to operate the software and store the data D. Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel E. Collect and store data about the organization's activities, resources, and personnel - B. Provide the controls needed to safeguard an organization's assets and data D. Transform data into information so management can plan, execute, control, and evaluate activities, resources, and personnel E. Collect and store data about the organization's activities, resources, and personnel Which of the following statements is (are) true? (Check all that apply.) A. A well-designed AIS can add value to an organization by improving product quality, improving efficiency, and sharing knowledge. B. By paying attention to its supply chain, a company can improve its performance by helping the others in the supply chain to improve their performance. C. An AIS can help improve decision making by providing accurate and timely information, reducing uncertainty, and identifying situations requiring management action. D. IT developments should not be allowed to affect business strategy or organizational culture. E. Because the data is so different, it is not practical to collect and integrate both financial and nonfinancial data about an organization's activities. - A. A well-designed AIS can add value to an organization by improving product quality, improving efficiency, and sharing knowledge. B. By paying attention to its supply chain, a company can improve its performance by helping the others in the supply chain to improve their performance. C. An AIS can help improve decision making by providing accurate and timely information, reducing uncertainty, and identifying situations requiring management action. Which of the following is a primary activity? A. Technology B. Firm infrastructure C. Inbound logistics D. Purchasing - C. Inbound logistics Which of the following is a secondary activity? A. Service B. Operations C. Human resources D. Marketing - C. Human resources Shipping newly manufactured phones to retailers and customers is an example of which type of primary activity? A. Operations B. Outbound logistics C. Marketing D. Service - B. Outbound logistics Information is best described as A. data that have been organized and processed to provide meaning and improve decision making. B. raw facts about transactions. C. facts that are collected, recorded, stored, and processed by an information system. D. a set of related, coordinated, and structured data. - A. data that have been organized and processed to provide meaning and improve decision making. The value of information can best be determined by A. the relevance provided to decision makers. B. the usefulness provided to decision makers. C. the time it takes to help decision makers make their decisions. D. the benefit provided by information less the cost of producing it. - D. the benefit provided by information less the cost of producing it. ________ information reduces uncertainty, improves decision making, or confirms or corrects prior expectations. A. Reliable B. Relevant C. Verifiable D. Complete - B. Relevant Joey Smith has been the controller of Nadia Cake for the past 5 years. The owners of Nadia have recently decided to expand their operation and are in the process of obtaining a loan from a local bank. In order to be qualified for the loan, the bank asks Nadi