MA Chap 1 to 3

The following statements have been made about IT Systems:

1. 1. Employees should able to change customer records if they notice an error or omission

2. 2. Transmitted data should usually be encrypted to prevent hackers access to it

3. Which of the following statement is True ?

• 1 Only

• 2 Only

• Both are Wrong

• Both are correct

ABC Company is a Bicycle retailer that has significant presence in South of Thailand.

Each retail outlet has manager who looks after day to day operations and is supported by admin assitatnt.

All other staff at each location are involved in retailing operations.

How would information of development of new services such as provision of car parts be classified as ?

• Strategic Info

• Tactical Info

• Operational Info

• None of the above

A small doctors’ surgery is considering providing a wireless network for use by nurses to access patient data in real time. Which of the following is a disadvantage of using a wireless network in this way?

• Access to the network cannot be limited

• The network cannot match the coverage of a wired network

• The network will be less stable than a wired network

• It will be necessary to buy lots of new user devices

Which of the following is the most reliable source of information on a country’s inflation rate?

• Spending on groceries by a family from one point of time to the next

• Journalist reports concerning the difficulties local families are having making ends meet

• Average house prices measured across the country from one point of time to the next

• The government figures for retail price index (RPI) or consumer price index (CPI)

An accountant wants to determine the increase in average usage of paper per employee from printing out of emails. She is concerned that paper usage in her business has risen by 10% in the last year to $40,400. She has estimated that it will take 4 weeks of her time to prepare the report. As well as other incremental costs she has estimated that the total cost of preparing the report will be $28,000. This report is an example of bad information. Which one of the principles of good information does it breach?

• Relevant

• Complete

• Cost beneficial

• Understandable

Strategic reports have many features, which of the following is the most likely feature of a strategic report?

• Prepared regularly

• Total accuracy of past and forecast data

• Highly summarised showing overall trends

• Demonstrates only the company’s current position

Which of the following could be described as an expert system?

• An ATM dispensing cash provided there is enough money in the account

• A stock management system, which highlights stock-outs

• A marketing database holding records of past advertising campaigns and the sales generated by those campaigns

• A tax calculator which predicts the level of tax payable in different scenarios

Which TWO of the following statements are thought to be benefits when using big data to enhance business decisions?

• There is no need to have a deep understanding of the industry in order to interpret the data

• Customer relationship management can be improved resulting in better repeat business and customer loyalty

• Business performance can be better tracked and analysed against a wider set of criteria

• All available big data will create value for an organisation when analysed

Which of the following is a key characteristic of marginal costing?

• Fixed costs are treated as product costs.

• Only variable costs are included in product costs.

• Marginal costing is used for external financial reporting.

• It does not consider the contribution margin.

A cost centre has an overhead absorption rate of $4.25 per machine hour, based on a  budgeted activity level of 12,400 machine hours.  In the period covered by the budget, actual machine hours worked were 2% more than the  budgeted hours and the actual overhead expenditure incurred in the cost centre was  $56,389.  What was the total over or under absorption of overheads in the cost centre for the period? 

• $1,054 over absorbed 

• $2,635 under absorbed

• $3,689 over absorbed

• $3,689 under absorbed