Describe Three Ways in Which Managers Can Use an Executive

question 24

Essay

Describe three ways in which managers can use an executive information system (EIS)to improve the efficiency and effectiveness of decision making.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the per-unit cost of production.

Total Revenue

The total income generated by a company from the sale of goods or services before any expenses are subtracted.

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.