RHC1 Information Systems Management Exam Version 1 Practice Test | College Exams

Question 1

Which scenario demonstrates a situation for which an executive support system (ESS) should be used?

A. A supervisor is responsible for creating a report showing categorized expenses and how they compare to previous time periods.

B. A business manager is responsible for determining which price should be charged to maximize profit.

C. A CEO is responsible for determining which product(s) should be discontinued to maximize long-term success.

D. A grocery store cashier is responsible for making sales and taking payments from customers throughout the day.

Correct Answer: C
Rationale: Executive Support Systems (ESS) are designed for senior-level decision-makers to address strategic, unstructured problems. The CEO's decision on product discontinuation for long-term success is a high-level, strategic issue, fitting for an ESS. A supervisor creating expense reports is a managerial task for a Management Information System (MIS). A business manager determining pricing is an analytical task for a Decision Support System (DSS). A cashier processing transactions is an operational task for a Transaction Processing System (TPS).

Question 2

Which statement describes a transaction processing system (TPS)?

A. It generates regular reports from compressed routine data.

B. It records daily routine business process information.

C. It addresses needs of leaders at the top of the hierarchy.

D. It focuses on unique and rapidly changing problems for leaders in the middle of the hierarchy.

Correct Answer: B
Rationale: A Transaction Processing System (TPS) is fundamental to operational levels, capturing and processing detailed data from daily business transactions like sales, payments, and orders. Generating reports from compressed data is the function of a Management Information System (MIS). Addressing the needs of top leaders is the role of an Executive Support System (ESS). Focusing on unique, rapidly changing problems for middle managers is the function of a Decision Support System (DSS).

Question 3

Which function describes a role of an executive support system (ESS)?

A. Keeping track of elementary business activities

B. Providing sophisticated analytics and models for leaders in the middle of the hierarchy

C. Providing answers to routine questions with a predefined procedure for answering them

D. Addressing needs of leaders at the top of the hierarchy

Correct Answer: D
Rationale: An Executive Support System (ESS) is specifically tailored for top-level executives, providing them with a broad, aggregated view of organizational performance and tools for strategic decision-making. Keeping track of elementary activities is the role of a Transaction Processing System (TPS). Providing sophisticated analytics for middle managers is the function of a Decision Support System (DSS). Providing answers to routine questions is associated with Management Information Systems (MIS) or TPS.

Question 4

Which question is related to the use of a transaction processing system (TPS)?

A. Which products should be primarily produced in five years?

B. Which level of inventory should be maintained to optimize profit?

C. How many parts are in inventory?

D. How do sales of one product compare to sales of another?

Correct Answer: C
Rationale: A Transaction Processing System (TPS) deals with real-time, granular data about current operations. Asking for the exact count of parts in inventory is a query for factual, current data that a TPS would record and store. Questions about future production, optimal inventory levels, and sales comparisons require analysis, forecasting, or aggregation of data, which are functions of Decision Support Systems (DSS), Executive Support Systems (ESS), or Management Information Systems (MIS).

Question 5

Which task should be accomplished using an enterprise system (ES)?

A. Organize information to move products from their source to consumption optimally

B. Coordinate business processes that deal with buyers in sales, marketing, and service

C. Collect, distribute, and apply relevant company expertise efficiently for improved decision-making

D. Connect information from all areas of the business in one system

Correct Answer: D
Rationale: An Enterprise System (ES), or Enterprise Resource Planning (ERP) system, integrates key business processes from all functional areas (e.g., finance, HR, manufacturing, supply chain) into a single unified system. This creates a central repository of data accessible across the organization. Optimizing product movement is a goal of Supply Chain Management (SCM) systems. Coordinating processes with buyers is the function of Customer Relationship Management (CRM) systems. Collecting and applying company expertise is the role of Knowledge Management Systems (KMS).

RHC1 Information Systems Management Exam Version 1

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