Periodic reporting in MIS: What is the most appropriate primary use of a periodic (recurring) management report?

Difficulty: Easy

Correct Answer: identify the problem

Explanation:


Introduction / Context:
Periodic reports (daily, weekly, monthly) compile routine performance data such as sales, costs, inventory, and service levels. They are foundational to management by exception, flagging deviations from plan that warrant further analysis and action.



Given Data / Assumptions:

  • Reports are standardized and recurring, not ad hoc studies.
  • They summarize KPIs against targets or prior periods.
  • Management needs to detect issues quickly and consistently.


Concept / Approach:
The first value of a periodic report is problem identification. By comparing actuals to budgets and thresholds, managers spot anomalies that justify deeper investigation. Subsequent steps—evaluating, identifying, and selecting solutions—require additional analysis, alternatives generation, and decision processes beyond the scope of simple recurring reports.



Step-by-Step Solution:

Recognize the role of recurring reports: monitoring and exception detection.Link KPI variance to early identification of problems.Note that solution evaluation/selection are later phases using additional tools (e.g., what-if analysis).Choose “identify the problem.”


Verification / Alternative check:
MIS frameworks position periodic reports at the top of the control loop, surfacing deviations for subsequent managerial action.



Why Other Options Are Wrong:

  • Evaluate/identify/select solutions: These are post-identification steps typically handled via analysis, meetings, or decision support models, not by the periodic report itself.
  • None: Incorrect because periodic reports do support problem identification.


Common Pitfalls:
Expecting reports to prescribe solutions automatically; designing reports without clear targets or thresholds undermines their problem-identification power.



Final Answer:
identify the problem

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