Section 1: Multiple Choice

1. When the AIS provides information in a timely and accurate manner, it stands as an example of
   1. improved decision making.
   2. improving the quality and reducing the costs of products or services.
   3. improving efficiency.
   4. all of the above

1. Which of the following is conceptually similar to a journal in a manual AIS?
   1. database
   2. master file
   3. record
   4. transaction file

1. Business process reengineering means:
   1. configuring the business processes to conform to the functionality of the IT system.
   2. configuring the IT system to the business process for best processing speed.
   3. matching the IT and business processes to achieve the greatest mutual benefit from each.
   4. configuring both IT and business processes to meet the goals of ERP.

1. In a city, electric power is provided to consumers by the city power company. Each month the power company mails bills to 70,000 households and then processes payments as they are received. What is the best method for this company to ensure that payment data entry is efficient and accurate?
   1. Well-designed paper forms
   2. Source data automation
   3. Use of turnaround documents
   4. Sequentially numbered bills

1. The form that specifies the components of a product, including descriptions and quantities of materials and parts needed is the: A. operations list.
   1. bill of materials.
   2. engineering.
   3. capital budgeting.

1. In a payroll processing DFD, the "prepare reports" activity will be represented by ________, the "employee payroll file" will be represented by ________, and the "management" will be represented by ________.
   1. a circle; two horizontal lines; a square
   2. a circle; two horizontal lines; two horizontal lines
   3. a rectangle; a square; a circle
   4. a square; two horizontal lines; a circle

1. A report is generated from data stored on magnetic disk. Which one of the following diagrams represents this activity?

A)

B)

C)

D)

1. The abstract representation of the contents of a database is called the A) logical data model.
   1. data dictionary.
   2. physical view.
   3. schema.

1. Sandra is a new graduate who has been hired by an old-line, family-owned furniture manufacturing company. She has been asked to analyze the company's accounting information system and to recommend cost-effective improvements. After noting that the production and sales departments use database systems that are entirely separated, she recommends that they be combined. Implementation of her recommendation would benefit the company by contributing to data A) interaction.
   1. integration.
   2. redundancy.
   3. certification.

1. The supply chain:
   1. ends once the raw materials arrive at the manufacturing facility.
   2. is an external process only.
   3. is both an internal and external process.
   4. ends once the product is manufactured and ready for sale.