MIS Can Add Value to Both Primary and Support Activities

question 184

Multiple Choice

MIS can add value to both primary and support activities within a business. Which of the following is not an example of a company adding value by the use of MIS in a support activity?

• A) Netflix creating a business strategy for the video rental market that delivers videos via the mail
• B) The human resources department creates a tracking system to efficiently reward employees based on their performance
• C) Scottrade Corp. creating an online system for employees to track paychecks, benefits, wellness rewards program, and other employee benefit items
• D) The University of Forks creates a program to automatically order office supplies such as pens and pads of paper for its employees

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Definitions:

Temporary Difference

A difference between the book value of an asset or liability and its tax value that results in taxable or deductible amounts in future years.

Pretax Financial Income

Pretax Financial Income is the amount of income earned by a company before taxes are deducted, as reported in its financial statements.

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a particular tax year.

GAAP

Generally Accepted Accounting Principles - a collection of commonly-followed accounting rules and standards for financial reporting.