A General Purpose Information System IS) Designed to Provide Reports

question 26

Multiple Choice

A general purpose Information System IS) designed to provide reports to managers for tracking operations, monitoring and control is called an) :

• A) Monitoring Information System MIS)
• B) Management Information System MIS)
• C) Multi-function Information System MIS)
• D) Marketing Information System MIS)

Determine the optimal level of production to maximize profit or meet certain economic criteria.

Apply knowledge of marginal costs and fixed costs to make production and pricing decisions.

Recognize the impact of price elasticity of demand on profit-maximizing output levels.

Understand the role of governmental intervention in markets through taxation or subsidies.

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Definitions:

Revenue and Spending Variance

The difference between the expected (budgeted) and actual amounts of revenue and expenses.

Flexible Budget Performance Report

A financial report that compares actual operating results to budgeted amounts adjusted for actual activity levels.

Activity Variance

The difference between the planned budget of an activity and the actual expenses incurred.

Net Operating Income

The earnings derived from the primary activities of a business before the subtraction of any taxes and interest charges.