Management Information System MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Management Information System, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Management Information System MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Management Information System mcq questions that explore various aspects of Management Information System problems. Each MCQ is crafted to challenge your understanding of Management Information System principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Management Information System MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Management Information System. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Management Information System knowledge to the test? Let's get started with our carefully curated MCQs!

Management Information System MCQs | Page 3 of 6

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Q21.
What is crucial to justify the costs in procuring information?

a.

Completeness

b.

Transparency

c.

Cost Benefit Analysis

d.

Reliability

Discuss
Answer: (c).Cost Benefit Analysis Explanation:It is essential to ensure that the benefits derived from information justify the costs, and for this purpose, cost benefit analysis, including cost accounting techniques and past experience, may be used.
Q22.
What was the predominant type of information system before the advent of computers and information technology?

a.

Open System

b.

Automated System

c.

Manual System

d.

Closed System

Discuss
Answer: (c).Manual System Explanation:Before the era of computers and information technology, most information systems were manual, involving the manual collection, collation, recording, and analysis of information.
Q23.
How has information management evolved in the age of information technology and computers?

a.

It has become more manual

b.

It has become less transparent

c.

It has become fully computerized

d.

It has become less accurate

Discuss
Answer: (c).It has become fully computerized Explanation:In the age of information technology and computers, information management from collection to application has become fully computerized in almost all types of organizations for reasons such as speed, accuracy, frequency of use, and transparency.
Q24.
What is the primary advantage of automated (computerized) systems in business organizations?

a.

Decreased transparency

b.

Increased manual effort

c.

Enhanced accuracy and speed

d.

Reduced frequency of use

Discuss
Answer: (c).Enhanced accuracy and speed Explanation:Automated (computerized) systems in business organizations provide enhanced accuracy and speed in functions such as finance, accounting, marketing, sales, inventory management, and human resource management.
Q25.
How does an open system defined in the context of MIS in insurance business?

a.

A system without any interaction with the environment

b.

A system that interacts with the environment and adapts itself

c.

A system with no technological changes

d.

A system with minimal transparency

Discuss
Answer: (b).A system that interacts with the environment and adapts itself Explanation:In the context of MIS in insurance business, an open system is defined as a system that interacts with the environment, including social, political, economic, market changes, and technological changes, and adapts itself accordingly.
Q26.
What characterizes a closed system in the context of information systems?

a.

Interaction with the environment and adaptability

b.

Predictable behavior and results

c.

Lack of interaction with the environment

d.

Uncertain outcomes

Discuss
Answer: (c).Lack of interaction with the environment Explanation:A closed system, in the context of information systems, is defined as a system that does not interact with the environment and does not change with changes in social, political, economic, market, or technological aspects.
Q27.
How is a deterministic system defined in the context of MIS in insurance business?

a.

A system with certain degrees of error

b.

A system that operates predictably

c.

A system with minimal transparency

d.

A system that interacts with the environment

Discuss
Answer: (b).A system that operates predictably Explanation:In the context of MIS in insurance business, a deterministic system is defined as a system that operates in a predictable manner, where the interaction among various departments and system parts, as well as its impact, is known with certainty.
Q28.
What is the primary focus of Transaction Process System (TPS) in business organizations?

a.

Long-term strategic planning

b.

Routine business activities and transactions

c.

Decision support for management

d.

Probabilistic modeling

Discuss
Answer: (b).Routine business activities and transactions Explanation:TPS focuses on expediting and improving routine business activities of the organization, involving activities such as purchase, production, storage, marketing, sales, delivery, accounting, investment, and payments.
Q29.
What characterizes MIS in the context of an organization's information system?

a.

Focus on strategic planning

b.

Primarily transaction-oriented

c.

Designed for providing information to support decision-making functions

d.

Limited use of computer and software

Discuss
Answer: (c).Designed for providing information to support decision-making functions Explanation:MIS is defined as an integrated user-machine system designed to provide information to support operational control, management control, and decision-making functions in an organization.
Q30.
According to Davis and Olson, how is MIS defined?

a.

A manual system for routine tasks

b.

An open system for decision support

c.

An integrated user-machine system for providing information

d.

A closed system for strategic planning

Discuss
Answer: (c).An integrated user-machine system for providing information Explanation:Davis and Olson define MIS as an integrated user-machine system designed for providing information to support operational control, management control, and decision-making functions in an organization.
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