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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

A retail chain's regional managers receive a weekly report listing sales by store compared with target, with exceptions highlighted where sales fall more than 10% below target. Which type of information system is primarily providing this report?

This is a management information system. It converts transaction data into routine summary and exception reports that help middle managers monitor performance against targets, whereas a transaction processing system merely records transactions and an executive system supports strategic decisions.

  1. ATransaction processing system
  2. BManagement information systemCorrect
  3. CExecutive information system
  4. DExpert system

Explanation

A management information system takes data captured by transaction processing systems and summarises it into routine reports, including exception reports, for middle management control. A transaction processing system only records day-to-day transactions. An executive information system serves senior strategic needs with external data and drill-down, which is not described here.

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