Easy2 marksMultiple Choice

ACCA · Question 3 · Information, technologies and systems

Section A

A commercial forestry company uses an Executive Information System (EIS) to monitor its global operations.

Which of the following is a key characteristic of an EIS compared to a standard Management Information System (MIS)?

Answer options:

A.

It focuses exclusively on internal, historical transaction processing.

B.

It provides highly detailed, routine operational reports for frontline supervisors.

C.

It incorporates external data and provides high-level strategic summaries with drill-down capabilities.

D.

It is primarily used to automate routine decision-making processes.

How to approach this question

Differentiate between the levels of management. EIS is for top executives (strategic), MIS is for middle management (tactical).

Full Answer

C.It incorporates external data and provides high-level strategic summaries with drill-down capabilities.✓ Correct
An Executive Information System (EIS) is tailored for senior executives. It provides a user-friendly interface, integrates external data (like market trends or competitor analysis) with internal data, and allows users to 'drill down' from high-level summaries into specific details. MIS typically focuses on internal, routine reports for middle management.

Common mistakes

Confusing EIS with MIS or TPS.

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