Easy2 marksMultiple Choice

ACCA · Question 1 · Information Systems

Section A

OmniRetail, a global supermarket chain, is implementing a new Executive Information System (EIS) to monitor daily store performance. The system aggregates data from millions of transactions to provide high-level summaries for the Board of Directors.

Which of the following is a primary characteristic of an Executive Information System (EIS) in this context?

Answer options:

A.

It primarily processes routine, day-to-day operational transactions.

B.

It provides highly summarized data with the ability to drill down into underlying details.

C.

It is exclusively used by middle management for short-term tactical planning.

D.

It automatically makes operational decisions without human intervention.

How to approach this question

Recall the hierarchy of information systems. EIS sits at the top (strategic level), requiring summarized data and user-friendly interfaces (dashboards) with drill-down features.

Full Answer

B.It provides highly summarized data with the ability to drill down into underlying details.✓ Correct
Executive Information Systems (EIS) are strategic-level systems designed to help senior management make unstructured decisions. They draw data from internal MIS and external sources, presenting it in a highly summarized, graphical format (dashboards) while allowing users to 'drill down' to more granular data if needed.

Common mistakes

Confusing EIS with MIS (Management Information Systems) which are typically used by middle management.

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