Question 1

PERT/CPM scheduling: what is the name of the latest time an event can occur without delaying completion of the entire project?

Accepted Answer

Introduction / Context: Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM) compute event times to identify schedule flexibility. Understanding “earliest” and “latest” times is essential to locate slack and protect the project completion date. Given Data / Assumptions: An “event” marks completion of preceding activities and enables successors. We want the latest occurrence time that still preserves the planned project finish date. Network times are typically computed via forward and backward passes. Concept / Approach: The latest allowable time (also called latest event time) is computed during the backward pass. It represents the latest occurrence without impacting the project end. The difference between the latest and earliest event times indicates slack; zero slack events lie on the critical path. Step-by-Step Solution: Run a forward pass to get earliest event times (EET).Run a backward pass from the project finish to compute latest event times (LET).Identify LET as the “latest allowable time” preserving the overall completion date. Verification / Alternative check: Project management references define earliest vs. latest times and tie criticality to zero slack (LET − EET = 0). Why Other Options Are Wrong: “Earliest allowable time” refers to forward-pass results; “earliest pass” and “latest pass” are actions (computations), not the time itself. “None” is incorrect because the proper term exists. Common Pitfalls: Confusing activity floats with event slack; mixing up earliest/latest activity start/finish (ES/EF, LS/LF) with event times; ignoring calendar constraints and resource leveling that can alter practical “allowable” times. Final Answer: latest allowable time

Question 2

MIS project initiation: what does a study project proposal typically include before a full feasibility study proceeds?

Accepted Answer

Introduction / Context: Before committing significant resources, organizations prepare a study project proposal (sometimes called a pre-feasibility or terms-of-reference document). It justifies undertaking a detailed feasibility study by outlining expected benefits and the cost of the study itself, ensuring prudent governance and budget control. Given Data / Assumptions: Management needs enough information to decide whether to fund the full study. The document summarizes anticipated business impact and required study effort. The proposal precedes detailed analysis and design work. Concept / Approach: A sound study project proposal includes an initial benefits hypothesis (e.g., profit improvement, cost savings, risk reduction) and a budget for conducting the feasibility work (analysts’ time, stakeholder workshops, tool licenses, data collection). This combination enables a go/no-go decision based on expected value versus the cost of investigation. Step-by-Step Solution: Summarize the envisioned MIS impact (profit, service, compliance).Estimate time and expense to perform the feasibility study.Present both so management can authorize or defer the study. Verification / Alternative check: Project governance standards (stage-gate, PRINCE2, PMBOK) call for an initial business case and an estimate of the cost to develop the full business case—mirroring (a) and (b). Why Other Options Are Wrong: Choosing only (a) or only (b) omits necessary information for sponsorship; “neither” is incorrect because proposals routinely contain both. Common Pitfalls: Inflated benefit claims without evidence; underestimating study costs; failing to define scope boundaries and success criteria for the feasibility phase. Final Answer: both (a) and (b)

Question 3

Transmission modes: in which channel type is data permitted to flow in only one direction (no return path for reverse transmission)?

Accepted Answer

Introduction / Context: Communication links are classified by directionality: simplex, half-duplex, and full-duplex. Network engineers must select the appropriate mode based on application needs and physical medium constraints. Understanding these terms is foundational to data communications and networking exams. Given Data / Assumptions: “Only one direction” implies no reverse channel is available for data. The alternatives include standard duplexing modes. Terminology should align with conventional definitions. Concept / Approach: A simplex channel carries signals in one direction only (e.g., broadcast radio to a receiver, keyboard to CPU). Half-duplex allows both directions but not simultaneously (push-to-talk radios). Full-duplex permits simultaneous two-way transmission (telephone). “Dumb channel” is not a standard technical term for directionality and serves here as a distractor. Step-by-Step Solution: Interpret “one direction only” → simplex definition.Eliminate half-duplex (alternating) and full-duplex (simultaneous two-way).Select “simplex channel.” Verification / Alternative check: Any data communications reference defines directionality exactly in this way; examples align with the simplex/half-duplex/full-duplex taxonomy. Why Other Options Are Wrong: Half-duplex and full-duplex allow reverse transmission; “dumb channel” lacks formal meaning in this context; “None” is incorrect because “simplex” is correct. Common Pitfalls: Confusing “simplex” with “single wire” (some full-duplex can run on a single twisted pair with echo cancellation) or assuming half-duplex equals one-way (it is two-way but not concurrent). Final Answer: simplex channel

Question 4

Artificial Intelligence basics: which statement correctly describes an AI system in organizations and applications today?

Accepted Answer

Introduction / Context: Artificial Intelligence (AI) enables computers to perform tasks that typically require human cognition: classification, prediction, reasoning, planning, and decision-making. Understanding what AI can—and cannot—do is essential for realistic expectations and responsible deployment across domains like healthcare, finance, and operations. Given Data / Assumptions: AI systems may automate or augment decisions under uncertainty. AI outputs are probabilistic and depend on data quality and model design. Ethical, legal, and practical constraints limit full automation of professional roles. Concept / Approach: The correct description is that AI is a computer application where the system makes decisions or judgments, typically using rules, statistical learning, or optimization. Claims of infallibility are false: models can be biased, overfit, or face distribution shifts. The idea that AI will “replace” professionals wholesale is speculative and misleading; current best practice emphasizes augmentation—decision support, triage, and productivity—while retaining human oversight, especially where accountability and empathy matter. Step-by-Step Solution: Identify AI’s role: automated judgments under uncertainty.Evaluate “infallible”: reject due to model error, data drift, and uncertainty.Evaluate “replace professionals”: reject as overgeneralization; many tasks remain supervised/augmented.Therefore, select the precise characterization in option (a). Verification / Alternative check: Industry standards and regulations mandate human-in-the-loop for high-risk uses (e.g., clinical decision support), reflecting that AI is not infallible and not a total replacement. Why Other Options Are Wrong: “Two of the above” cannot be true since (b) and (c) are incorrect; “None” is wrong because (a) is correct. Common Pitfalls: Overtrusting algorithmic outputs; neglecting monitoring, governance, and explainability; ignoring data lineage and bias mitigation. Final Answer: it is computer application where the computer makes decisions or judgment

Question 5

Order-to-cash data flow: the order entry subsystem creates a file of order records that primarily feeds which downstream business subsystem for updates and control?

Accepted Answer

Introduction / Context: In the order-to-cash cycle, order entry captures customer commitments. Those records trigger availability checks, reservations, and later, picking, shipping, billing, and receivables. Understanding the immediate downstream consumer of order data clarifies how inventory accuracy and service levels are maintained. Given Data / Assumptions: Order entry records include items, quantities, promised dates, and customer information. Systems typically perform availability checks and allocations against stock. Multiple subsystems may eventually use order data, but one is primary for near-term control. Concept / Approach: The inventory subsystem is the primary recipient for immediate updates: it checks stock on hand, allocates or reserves quantities, and may initiate replenishment signals (backorders, ATP/CTP logic). While production planning, quality, and managerial control also leverage order information, the first operational need is to reflect demand against inventory and drive fulfillment activities accurately. Step-by-Step Solution: Capture order → create order file with line items.Post to inventory subsystem for available-to-promise and reservation.Subsequently, feed production planning, shipping, invoicing, and financial subsystems. Verification / Alternative check: ERP process flows (e.g., SAP SD to MM/IM, Oracle OM to Inventory) connect order entry directly to inventory availability and reservations, confirming the data dependency. Why Other Options Are Wrong: Production subsystem uses aggregated demand later for planning; quality subsystem focuses on conformance; “control subsystem” is vague and not the immediate operational consumer. Common Pitfalls: Assuming production is always next—even for make-to-stock, inventory allocation precedes production actions; neglecting backorder logic that relies on accurate inventory posting. Final Answer: inventory subsystem

Question 6

Decision Support Systems (DSS):  To successfully implement a DSS, which of the following organizational characteristics is the exception (i.e., least desirable or not required)?

Accepted Answer

Introduction / Context: Decision Support Systems (DSS) succeed when organizations combine sound technology with user-centered processes. The question asks which listed characteristic is the exception—meaning the least necessary or potentially counterproductive for DSS success. This focuses on governance and change management, not just software features. Given Data / Assumptions: DSS emphasizes user interaction, iterative learning, and managerial self-service. Organizations benefit from training, funding, and controlled data environments. Highly centralized, mainframe-era control may conflict with agile, user-driven DSS development. Concept / Approach: A DSS thrives with end-user involvement, rapid prototyping, accessible data, and flexible tools. While strong IT governance and data controls are essential, overreliance on a powerful central computer group to initiate and manage all projects can slow experimentation and reduce user ownership. Modern DSS practices encourage partnership between IT and business, not domination by a central technical authority. Step-by-Step Solution: Identify traits that clearly promote DSS: funding, training, data/process controls.Evaluate the remaining trait: heavy central computer group control.Recognize misalignment with agile, user-driven decision support.Select it as the exception. Verification / Alternative check: Case studies show higher adoption when business users co-own DSS initiatives, and when governance supports—but does not smother—experimentation and rapid iterations. Why Other Options Are Wrong: Well-controlled data processing: essential to data quality and trust. Commitment of dollars/personnel: required for tools, data prep, and support. Education and training: critical for usage and insight generation. “All of the above are important”: invalid because one option is not desirable as stated. Common Pitfalls: Mistaking centralized control for effective governance; good governance balances standards with agility and user empowerment. Final Answer: powerful central computer groups to initiate and manage system projects

Question 7

Operational files and reports:  From which information source would you obtain the amount of a specific product sold to a specific customer in a past period?

Accepted Answer

Introduction / Context: Organizations maintain multiple operational files: customer master, inventory records, and sales history. Each has a distinct purpose. This question checks your understanding of which file stores historical, customer-specific sales quantities for prior periods—information frequently used in forecasting, account reviews, and performance analysis. Given Data / Assumptions: We need transactional history tied to customer and product over time. Customer file holds master data (name, address, terms), not detailed past sales. Inventory file tracks stock levels and movements, not per-customer sales totals. Concept / Approach: The sales history file (sometimes a fact table in a data warehouse) records completed transactions: who bought, what was bought, when, how much, and for what price. It enables time-series analysis, seasonality checks, and customer-level profitability. Therefore, it is the authoritative source for “amount sold to a customer in a past period.” Step-by-Step Solution: List candidate sources and their roles.Match the requirement (historical sales by customer and product) to the appropriate file.Select “sales history file.” Verification / Alternative check: Standard ERP and CRM schemas separate master data (customer, item) from transactional facts (orders, invoices), confirming sales history as the correct source. Why Other Options Are Wrong: Customer file: stores attributes and controls (credit, shipping) but not quantities sold by period. Inventory file: focused on stock position and valuation, not customer-specific sales totals. All/None of the above: conflict with the clear separation of data roles. Common Pitfalls: Confusing invoice or order headers in operational systems with curated history; reporting often uses a consolidated history table for accuracy and speed. Final Answer: sales history file

Question 8

Managerial levels and information needs:  Environmental (external) information generally has the greatest value at which management level?

Accepted Answer

Introduction / Context: Environmental information refers to external signals—market trends, competitor actions, regulations, technology shifts, and macroeconomic indicators. Although all levels can benefit, strategic decisions depend most on interpreting the external environment. This question aligns information types to managerial levels. Given Data / Assumptions: Top managers focus on strategy and long-term direction. Middle managers translate strategy into programs and budgets. Lower managers supervise operations and day-to-day tasks. Concept / Approach: Because top management must set direction and allocate resources under uncertainty, external information carries higher marginal value at that level. Operational decisions center on internal schedules, quality, and staffing, while middle management balances internal metrics with some external cues. Strategic positioning, however, relies heavily on scanning the environment. Step-by-Step Solution: Identify the decision horizon for each level (long, medium, short).Map external information’s influence: strongest at long horizon.Select “top management level.” Verification / Alternative check: Strategic management frameworks (SWOT/PESTEL/industry analysis) target top-level planning, confirming the primacy of environmental information there. Why Other Options Are Wrong: Middle/lower levels use more internal, detailed, and immediate data. “All of the above” dilutes the strategic emphasis of external scanning. Common Pitfalls: Assuming operational KPIs dominate everywhere; strategy requires vigilance beyond the firm’s boundaries. Final Answer: top management level

Question 9

Order-to-cash data sources:  In a typical enterprise system, customer master details (name, address, shipping instructions, credit terms) are primarily captured and maintained by which subsystem?

Accepted Answer

Introduction / Context: Customer data flows across the order-to-cash cycle. While many departments use the data, one subsystem typically owns the capture and maintenance of core customer master attributes used to create and process sales orders. Knowing the system of record prevents synchronization errors and duplicate maintenance. Given Data / Assumptions: Name and address, shipping instructions, and credit terms are needed at order creation. Billing references the customer master but is not the primary capture point. Manufacturing consumes demand signals but does not maintain customer masters. Concept / Approach: The order entry subsystem (sales order processing) needs accurate master data to validate new orders, apply credit limits, and route shipments. It either maintains the master directly or interfaces with a centralized customer master service; operationally, order entry is where this data is essential and often initiated or updated through controlled processes. Step-by-Step Solution: Identify where each attribute is required first (during order capture).Confirm that billing and manufacturing are downstream consumers.Select “order entry subsystem.” Verification / Alternative check: ERP modules (SD/Order Management) are documented as the master touchpoint for customers, with credit terms tied to order checks. Why Other Options Are Wrong: Manufacturing information system: focuses on production planning and execution. Billing subsystem: uses the customer master to invoice but rarely owns master maintenance. Marketing information system: may manage prospects/segments but not operational shipping/credit terms. Common Pitfalls: Confusing CRM prospect records with ERP customer masters, which contain transactional terms and logistics data. Final Answer: order entry subsystem

Question 10

User support facilities:  Many large organizations operate information ______ where managers can use fourth-generation languages to query online databases and receive PC hardware/software guidance.

Accepted Answer

Introduction / Context: As end-user computing grew, organizations established dedicated facilities to help managers access data and tools without deep programming expertise. These facilities typically offer query support using fourth-generation languages (4GLs), provide best practices, and advise on PC hardware/software choices. Given Data / Assumptions: The facility is physical or virtual and supports many managers. Services include database query assistance and desktop guidance. Terminology aligns with common MIS/IS literature. Concept / Approach: The established term is “information centers.” They centralize support for data access, report building, and tool selection while promoting standards. They are distinct from “expert systems” (AI knowledge-based applications), generic “control” groups, or the broader “MIS” department name. Step-by-Step Solution: Match the described services to known organizational constructs.Recognize the historical term “information center.”Select “centers.” Verification / Alternative check: IS management texts describe information centers as hubs for end-user support, training, and tool curation. Why Other Options Are Wrong: Expert: implies AI/knowledge bases, not a support facility label. Control: too generic and unrelated to end-user query support. MIS: a department, not the specific facility name. Common Pitfalls: Assuming “MIS” is synonymous with all sub-functions; information centers are a specific support construct within or alongside MIS. Final Answer: centers

Question 11

Financial control focus:  What is the prime concern of financial control in an organization’s information and control system?

Accepted Answer

Introduction / Context: Financial control encompasses the policies, procedures, and reporting that ensure resources are obtained and used effectively. While it touches many activities, its central purpose within a management information framework is to deliver reliable, timely financial status information that enables oversight and decision-making. Given Data / Assumptions: Financial control must support accountability, compliance, and stewardship. Operational tasks (e.g., payroll runs) are important but not the prime purpose. Decision-makers need status information to compare results with budgets and plans. Concept / Approach: The core of control is information for control—budgets, variance analyses, cash positions, and performance reports. Accounting for liabilities and paying employees are essential processes, yet they serve the broader aim of producing accurate, decision-useful financial information that guides resource allocation and corrective actions. Step-by-Step Solution: Define “prime concern”: the central objective rather than every necessary task.Relate financial control to management reporting, variance tracking, and compliance.Select “providing financial status information.” Verification / Alternative check: Control theory and managerial accounting position reporting and variance feedback as the heart of financial control loops. Why Other Options Are Wrong: Liabilities accounting and payroll are components, not the overarching concern. “All of the above” overstates process tasks as equal to the control objective. Common Pitfalls: Confusing necessary accounting operations with the primary purpose of control—informing decisions and ensuring financial discipline. Final Answer: providing financial status information

Question 12

Retail information systems:  In the retail sales industry, the most prominent operational system is the ______ system.

Accepted Answer

Introduction / Context: Retailers rely on front-line systems that capture each transaction as it occurs. The canonical example is the point-of-sale (POS) system, which records item scans, prices, promotions, payments, and returns. The question asks you to identify the core operational system widely used across retail environments. Given Data / Assumptions: Retail involves high-volume, real-time transactions at checkout. Systems must integrate with inventory, pricing, loyalty, and payments. Answer choices include terms not representing retail operational systems. Concept / Approach: POS systems connect scanners, terminals, and back-office databases to manage sales and inventory decrement in real time. They enable receipt printing, tax calculation, tender management, and feed analytics such as basket analysis. Other options (programming languages or obsolete hardware labels) are not retail operational systems per se. Step-by-Step Solution: Identify which option is an operational system used at checkout.Recognize POS as the industry standard.Select “POS (point-of-sale).” Verification / Alternative check: Industry references and vendor ecosystems (POS terminals, software suites) confirm POS as the central retail system. Why Other Options Are Wrong: COBOL: a programming language, not a retail application. ACM: not a standard retail system name in this context. PC/XT: an old hardware platform, not a retail operations system. Common Pitfalls: Mixing up technologies (languages/hardware) with application systems; POS is the application category used by retail. Final Answer: POS (point-of-sale)

Question 13

HR reporting scope:  Who uses the employee profile report within an organization?

Accepted Answer

Introduction / Context: An employee profile report consolidates key attributes such as role, grade, compensation bands, tenure, skills, and compliance training. It supports decisions across multiple organizational levels. The question tests whether this report has a narrow or broad audience. Given Data / Assumptions: Managers need profiles for staffing and performance discussions. Departments use profiles for workforce planning and budgeting. HR uses profiles for policy compliance, compensation analysis, and talent management. Concept / Approach: Because employee information is a shared corporate asset, well-designed HR reporting provides role-appropriate views to stakeholders. Security controls determine field-level visibility, but the underlying report type serves line managers, departments, and HR alike for aligned decisions on people matters. Step-by-Step Solution: List potential users and typical decisions they make.Confirm each user group relies on the same core profile data.Select “All of the above.” Verification / Alternative check: HRIS implementations routinely deliver standardized profile reports and dashboards to HR and business leaders with permissions. Why Other Options Are Wrong: Picking a single group ignores the cross-functional nature of workforce information in planning, compliance, and operations. Common Pitfalls: Overlooking access control; while many roles use the report, they may see different fields based on policy. Final Answer: All of the above

Question 14

DSS components and control points:  In a Decision Support System, which of the following are not major subsystems that provide opportunities for system design controls?

Accepted Answer

Introduction / Context: Classic DSS architecture includes three pillars: the database (data management subsystem), the model base (model management subsystem), and the dialog or language subsystem (user interface). Effective control and governance mechanisms can be embedded in each pillar. This question asks which listed subsystems are not major control points. Given Data / Assumptions: Database controls include data quality, lineage, access rights, and backup. Model base controls include versioning, validation, documentation, and audit trails. All pillars provide opportunities for design controls. Concept / Approach: Because both the database and model base are core DSS subsystems, each is a rich locus for controls. Data integrity and security are enforced in the database; correctness and transparency are enforced in the model base. Therefore, it is incorrect to say either one is “not” a major subsystem for controls. The correct response is that neither is excluded—they both are major control points. Step-by-Step Solution: Enumerate DSS subsystems and standard controls within each.Evaluate the prompt asking for subsystems that are not control opportunities.Conclude that neither database nor model base should be excluded.Choose “neither (a) nor (b).” Verification / Alternative check: DSS texts and frameworks (data, model, dialog) treat all layers as control targets—security, quality, and governance span the stack. Why Other Options Are Wrong: Database or model base individually: both are major and deserve controls. Both (a) and (b): would imply neither is major, which is false. None of the above: not precise, since option D already captures the correct logic. Common Pitfalls: Under-controlling models; governance should cover data and analytical models due to decision impact. Final Answer: neither (a) nor (b)

Question 15

Managerial development:  Which continuing education focus should all managers pursue to stay effective and aligned with organizational strategy?

Accepted Answer

Introduction / Context: Continuing education keeps managers current in a fast-changing environment. While specialist knowledge matters within functions, all managers—regardless of department—must understand the evolving landscape of opportunities and threats to make informed strategic and operational choices. Given Data / Assumptions: The audience is “all managers,” not a specific functional silo. The organization faces competitive, regulatory, technological, and market changes. Education should enhance decision-making across functions. Concept / Approach: Information on threats and opportunities (market shifts, competitor moves, customer expectations, supply chain risks) is universally relevant. It informs prioritization, resource allocation, and risk management in every unit. While updates in chemistry or accounting may be valuable to certain specialists, they are not universally applicable to all managers across the enterprise. Step-by-Step Solution: Interpret “all managers” as cross-functional.Identify the learning area with broadest strategic relevance.Select “information on threats and opportunities faced by the business.” Verification / Alternative check: Strategy frameworks emphasize environmental scanning and opportunity/risk assessment as core managerial activities. Why Other Options Are Wrong: Chemistry seminars: niche relevance, not universal. Accounting developments: valuable, but not always central to non-finance managers. All/None: either over- or under-inclusive; the targeted, universal choice is the business environment focus. Common Pitfalls: Confusing specialist CPD (continuing professional development) with general management development; the latter centers on understanding the external and internal forces shaping the business. Final Answer: information on threats and opportunities faced by the business

Question 16

End-user file manipulation and decision support:  A manager may use a file-manipulation language (for example, APL or a similar high-level, data-centric tool) to instruct the computer to perform which types of actions on corporate data files?

Accepted Answer

Introduction / Context: End-user computing tools and file manipulation languages (for example, APL, fourth-generation query/report writers, or modern scripting with data frames) empower managers to work directly with organizational data. This question tests which capabilities such tools commonly provide in a Management Information System (MIS) context. Given Data / Assumptions: The manager has read-only or governed access to corporate data files or views. Tools can compute derived metrics (ratios, percentages, indices). Tools can filter, sort, and select records based on specified criteria. Concept / Approach: Two fundamental categories of operations drive managerial analysis: transformation (creating new, computed information such as ratios, growth rates, moving averages) and selection (screening data to isolate relevant subsets). File manipulation languages and query/report systems support both, enabling rapid “slice-and-dice” analysis without writing low-level programs. Step-by-Step Solution: Recognize that “produce pre-computed information” describes transformations like computing margin = (sales - cost) / sales.Recognize that “perform screening and selection” describes WHERE-like filtering (for example, select region = East and month = Jan).Since both are core features of such tools, choose the combined option. Verification / Alternative check: Any standard report writer or data manipulation system allows calculated columns and conditional selection. Spreadsheet pivot tables and SQL SELECT statements mirror these same capabilities. Why Other Options Are Wrong: produce pre-computed information (alone): incomplete; filtering is also routine. perform screening and selection (alone): incomplete; computed fields are equally fundamental. neither / none: incorrect because these are precisely what such tools are built for. Common Pitfalls: Confusing data manipulation with data governance—permissions and validation still apply. Another pitfall is relying on uncontrolled extracts, which can lead to “multiple versions of the truth.” Final Answer: both (a) and (b)

Question 17

Periodic reports and management by exception:  A periodic managerial report best facilitates “management by exception” when it does which of the following?

Accepted Answer

Introduction / Context: Management by exception is a control philosophy: managers focus attention on significant deviations from plan, standard, or budget and avoid micromanaging routine, in-range results. Periodic reports are key instruments for surfacing those exceptions. Given Data / Assumptions: Standards, budgets, or control limits are defined in advance. Periodic reports aggregate activity for a period (day, week, month). The objective is to highlight deviations that warrant action. Concept / Approach: To enable exception-based control, a report must explicitly compare actuals against standards and indicate variance size and direction. Pure narrative detail or listing only in-range transactions does not help managers spot problems; summary by itself is useful but insufficient without a standard for comparison. Step-by-Step Solution: Identify the essence of exception control: actual vs. standard comparison with variance.Evaluate choices for their ability to surface exceptions.Select “comparing actual performance with acceptable standards.” Verification / Alternative check: Control charts, budget variance reports, and KPI dashboards all rely on comparisons to targets or limits to trigger attention and corrective action. Why Other Options Are Wrong: Including complete alphabetic descriptions: adds detail, not exception focus. Including only in-limit transactions: hides exceptions; the opposite of what is needed. Consolidation into summary form: helpful, but without standards, exceptions remain unclear. None of the above: incorrect because comparison to standards is exactly the enabler. Common Pitfalls: Setting limits too tight or too loose; failing to provide drill-down for root-cause analysis after an exception is flagged. Final Answer: comparing actual performance with acceptable standards

Question 18

Success factors for MIS development:  Which of the following are essential requirements for developing a successful Management Information System (MIS) in an organization?

Accepted Answer

Introduction / Context: Building a Management Information System is a socio-technical effort. It requires skilled people, clear goals, and sustained sponsorship. This question checks recognition that success depends on multiple, interlocking prerequisites rather than a single factor. Given Data / Assumptions: Technical specialists design, build, and integrate the system. Short-range goals guide near-term deliverables and quick wins. Long-range goals ensure architectural coherence and scalability. Management commitment secures budget, staffing, and change management support. Concept / Approach: Effective MIS programs align resources (people and funding) to a roadmap (short and long term) under clear executive sponsorship. Omitting any piece raises risk: without skills, execution fails; without goals, scope drifts; without sponsorship, change stalls. Step-by-Step Solution: Confirm the need for technical capacity (analysts, DBAs, developers).Confirm planning horizons: short-range milestones and long-range vision.Confirm executive support for resources and governance.Therefore, select the inclusive option. Verification / Alternative check: Project management frameworks and IT governance models (PMO, steering committees) emphasize these same pillars for success. Why Other Options Are Wrong: Each individual item is necessary yet insufficient alone; only “All of the above” captures the complete requirement set. Common Pitfalls: Underinvesting in change management; chasing short-term wins that undermine long-term architecture; or, conversely, planning endlessly without delivering incremental value. Final Answer: All of the above

Question 19

Charts versus network diagrams:  In a standard bar chart (for example, a Gantt chart), the “bars” are drawn as what geometric element?

Accepted Answer

Introduction / Context: Project communication often mixes several visual tools: Gantt (bar) charts and network diagrams (PERT/CPM). Confusing their visual conventions leads to misinterpretation of schedules and dependencies. This question distinguishes bar chart elements from network diagram symbols. Given Data / Assumptions: A bar chart displays task duration against time using horizontal bars. Network diagrams depict logical precedence and dependencies using nodes and arrows. The options misleadingly tie bar representation to network-diagram shapes. Concept / Approach: In a bar (Gantt) chart, bars are simple horizontal rectangles plotted on a time axis—independent of network diagram notation. Rectangles, arrows, or triangles “in a network diagram” are not the defining elements of a Gantt bar. Therefore, none of the offered network-diagram-based choices correctly describe a Gantt bar’s geometry. Step-by-Step Solution: Define bar chart: time-scaled horizontal rectangular bars representing task durations.Recognize that the options restrict shapes to a “network diagram,” which is a different tool.Conclude that none of the options accurately states the bar chart representation. Verification / Alternative check: Any project management textbook shows Gantt bars as plain rectangles along a calendar timescale, while networks use nodes and directed edges to show dependencies. Why Other Options Are Wrong: rectangles/arrows/triangles in a network diagram: Conflate two distinct visuals; bars are not network elements. All of the above: Cannot be true since each premise is wrong. Common Pitfalls: Assuming that because bars and networks both visualize schedules, their notations are interchangeable—they are complementary, not identical. Final Answer: None of the above

Question 20

Order-to-cash controls:  Customer credit-granting and credit checks should be embedded primarily in which application subsystem so that risky orders are held before fulfillment?

Accepted Answer

Introduction / Context: Effective credit control prevents shipping to delinquent or over-limit customers. The best control point is early in the order-to-cash (O2C) process so that downstream costs (picking, packing, shipping) are not incurred for unapproved credit risk. This question asks where that control belongs. Given Data / Assumptions: Orders enter the system through the sales order entry (SOE) function. Credit policies and risk limits are defined centrally (often in A/R or credit management). The goal is to block or review risky orders before fulfillment. Concept / Approach: Embed credit checks in the sales order entry subsystem: when an order is captured, the system validates the customer’s status, exposure, and credit terms. If limits are exceeded or accounts are on hold, the order is routed for approval or put on credit hold, preventing fulfillment activities from starting unnecessarily. Step-by-Step Solution: Identify earliest control point: at order capture, not after shipment.Map to subsystem: sales order entry performs real-time checks against credit master data.Select “sales order entry system.” Verification / Alternative check: ERP systems (for example, SAP SD, Oracle Order Management) execute automatic credit checks during order entry and block orders exceeding exposure or past-due thresholds. Why Other Options Are Wrong: Inventory control: Manages stock, not credit exposure. Accounts receivable: Owns policy and balances but the check must occur at order entry to be preventive. Sales analysis: Reporting, not transactional control. None: Incorrect because credit checks belong in SOE. Common Pitfalls: Performing credit checks only at invoicing, which is too late; or bypassing holds via manual overrides without authorization. Final Answer: sales order entry system

Management Information Systems Questions