Providing the information for decision making is the primary objective of which system
Show
The correct option is B). “Provide useful or important information to decision-makers” A) No, the first or core objective of accounting (OA) is not to implement strong internal controls. Yes, this can be OA but not primary because strong internal controls are the further stage of accounting processes. B) Yes, delivering useful information to the decision-makers of the entity is the core and primary OA because if accounting information provided by accounting is relevant or useful then it will be considered a strong base of accounting. C) Preparation of a financial statement (FS) is an important but not primary objective of accounting because FS is made by the entities at the end of the year. Thus, Fs can not be the first OA. D) Ensuring profitability is an OA but not primary because profitability is also the objective that comes after many objectives. Profits will be generated if the primary things or objectives will be archived. Management information systems can help you make valid decisions by providing accurate and up-to-date information and performing analytic functions. You have to make sure the management information system you choose can work with the information formats available in your company and has the features you need. Suitable management information systems can structure the basic data available from your company operations and records into reports to present you with guidance for your decisions. Information from Company OperationsWhen you base your decisions on data available from management information systems, they reflect information that comes from the operations of your company. Management information systems take data generated by the working level and organize it into useful formats. Management information systems typically contain sales figures, expenses, investments and workforce data. If you need to know how much profit your company has made each year for the past five years to make a decision, management information systems can provide accurate reports giving you that information. Capability to Run ScenariosThe capability to run scenarios is a key decision-making tool. Some management information systems have this feature built in, while others can provide the information required for running scenarios on other applications, such as spreadsheets. Your decision is influenced by what happens if you decide a certain way. What-if scenarios show you how different variables change when you make a decision. You can enter reduced staff levels or increased promotion budgets and see what happens to revenue, expenses and profit for different levels of cuts or increases. Management information systems systems play a critical role in making realistic scenarios possible. Projections to Assist in Decision MakingAny decisions you make result in changes in the projected company results and may require modifications to your business strategy and overall goals. Management information systems either have trend analysis built in or can provide information that lets you carry out such an analysis. Typical business strategies include projections for all fundamental operating results. A trend analysis allows you to show what these results would be in the current situation and how they will change once you have implemented the decisions you have taken. The new values form the basis of your strategic approach going forward. Implementation and EvaluationWhile you make your decisions with specific goals in mind and have the documentation from management information systems and trend analysis to support your expectations, you have to track company results to make sure they develop as planned. Management information systems give you the data you need to determine whether your decisions have had the desired effect, or whether you have to take corrective action to reach your goals. If specific results are not on track, you can use management information systems to evaluate the situation and decide to take additional measures if necessary. Internal managerial accounting systems are deployed to provide information that management can use to make good decisions. Manufacturing plants use these systems to help in costing and managing the manufacturing process. Hospitals implement systems to assist them in insurance billing and other in-house requirements. Internal managerial accounting systems vary with the industry they are deployed, allowing for functionalities and reports specific to that industry. Decisions
Planning
Efficiencies
Other Objectives
What is the main objective of the decisionDecision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
What is the primary objective of an information system?In particular, the objective of an information system is to provide the appropriate outputs to the members of the organization. An organization is an example of an artificial system: it is a formal social unit devoted to the attainment of specific goals.
What is decision1. A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities, typically resulting in ranking, sorting, or choosing from among alternatives.
Which system information is stored for decisionDecision Support System (DSS)
The DSS is a management-level, interactive computer-based information system that helps managers to make decisions. The Decision Support System specifically gives middle managers the information necessary to make informed, intelligent decisions.
|