ACCA Applied Knowledge · Business and Technology · Financial systems and technology
Which of the following is a characteristic of an executive information system (EIS) as opposed to a management information system?
An executive information system draws together internal and external data for senior managers and lets them drill down from summary figures to detail. Routine detailed operational reporting and order processing belong to MIS and transaction processing systems instead.
- AIt mainly produces detailed, routine operational reports
- BIt combines internal data with external data and allows senior managers to drill down from summary figuresCorrect
- CIt replaces the need for a database
- DIt is used solely to process customer orders
Explanation
An EIS serves senior management with highly summarised information, often including external data such as market trends, and allows drill-down into detail. Detailed routine reporting is typical of MIS and transaction processing, so the first option is wrong.
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