MCQs on Management Information System set-8

1) .......... type of budgeting is based on estimation of total project cost by the top management.
A. Top down
B. Bottom up
C. Neutral
D. Zero-based

2) Which of the following is a network of facilities for procuring materials, transforming raw materials into intermediate and finished products, and distributing finished products to customers?
A. production chain
B. primary chain
C. supply chain
D. distribution chain

3) In which of the following types of analysis, the goal is to find the optimum value for one or more target variables, given certain constraints?
A. what if analysis
B. optimization
C. Goal seeking analysis
D. None of the above

4) The project team is composed of the system professional are directly responsible for ........... the system.
A. testing
B. building
C. deleting
D. innovating

5) The components of an expert system include a .......... that perform interfaces on the knowledge base and communicate answers to a user's questions?
A. Database and software module
B. Knowledge base and software module
C. communication base and software module
D. Knowledge base and interactive module

6) Controls of data communication deal with
A. the communication channel
B. the computer
C. terminals
D. All of the above

7) ........ type of feasibility deals with the costs of both development and operations of the system.
A. Economic
B. Motivational
C. Technical
D. Schedule

8) Deciding how to carry out specific tasks by strategic and middle management and establishing criteria for completion and resource allocation best describes
A. strategic decision making
B. operational control
C. knowledge level decision making
D. management control

9) Which level of an organization is responsible for setting medium term goals and allocating resources?
A. The tactical level
B. The supervisory level
C. The strategic level
D. The executive level

10) ....... type of testing ensures the system is free of errors and is ready to be placed into operation.
A. Audit
B. General
C. Technical
D. Data

11) Which of the following refers to the expenses that a customer incurs in lost time and expenditure of resources when changing from one seller to a competing seller?
A. termination costs
B. moving costs
C. development costs
D. switching costs

12) Tracking employee training, skills, and performance appraisals is an example of a human resource information system operating at the
A. operational level
B. management level
C. knowledge level
D. strategic level

13) Data encryption concept is used for ......... purposes.
A. data hidden
B. data display
C. data processing
D. data transfer

14) Which of the following focuses on specific functions that can be found in many different industries?
A. branded exchange
B. local exchange
C. horizontal exchange
D. vertical exchange

15) In the following statement which one is true to information systems.
A. information into data
B. procedures into statement
C. data into information
D. statement into procedures

16) .........captures and processes customer orders and produces customer invoices.
A. Inventory
B. Order processing
C. Payroll
D. Ledger

17) Management information system usually
A. serve managers interested in weekly, monthly and yearly results not day to day activities.
B. Help managers make decisions that unique, rapidly changing and not easily specified in advance
C. Provide managers with a generalized computing and telecommunications capacity that can be applied to a changing array of problems.
D. Perform and record the daily routine transactions necessary to the conduct of business.

18) Critical information for top management is provided by ....... information system.
A. expert
B. executive
C. decision
D. managerial

19) ........ is/are the resources are used for DSS to explore decision alternatives.
A. Data
B. Software
C. Hardware
D. People

20) ......... represent complex data using interactive three-dimensional graphical forms such as charts, graphs and maps.
A. Data entry systems
B. Data Analysis systems
C. Database Management
D. Data visualization systems


1) A. Top down
2) C. supply chain
3) B. optimization
4) B. building
5) B. Knowledge base and software module
6) D. All of the above
7) A. Economic
8) D. management control
9) A. The tactical level
10) A. Audit
11) D. switching costs
12) A. operational level
13) D. data transfer
14) C. horizontal exchange
15) C. data into information
16) B. Order processing
17) A. serve managers interested in weekly, monthly and yearly results not day to day activities.
18) B. executive
19) D. People
20) D. Data visualization systems